While Renaissance Capital predicts good times for Initial public offerings (IPOs) in 2025, such companies are entering a high-stakes market, where timing is more critical than ever. President Trump’s trade wars are unsettling investors and driving market corrections, adding another layer of uncertainty to an already volatile economic environment. As a result, institutional investors are largely adopting a “wait-and-see” approach.

Yet, despite the caution, demand for initial public offerings remains strong, particularly in high-growth sectors like artificial intelligence and fintech. In this analysis, we take a closer look at the key companies preparing to go public in 2025, examining their market performance and valuations.

Prominent companies going public in 2025

Company	Estimated IPO Valuation	Estimated IPO Date
CoreWeave	$35 billion	First half of 2025
Klarna	$14.6 billion	April 2025
Chime Financials	$25 billion	Not finalized
Genesys Cloud Services	$21 billion	Later in 2025
Nouryon	$13 billion	Second half of 2025
eToro	$5 billion	First half of 2025
Medline Industries	$50 billion	First half of 2025
Reliance JIO	$120 billion	Second half of 2025

CoreWeave

• Estimated valuation: $35 billion

CoreWeave, a leading provider of Nvidia GPU-powered cloud infrastructure, has filed for an IPO on the Nasdaq Exchange under the ticker CRWV following an impressive 737% year-over-year revenue growth.

The company has experienced strong demand for AI computing power, driven by the release of ChatGPT, and delivered a solid performance with a 76% gross margin in the fourth quarter of 2024. Here is more information on CoreWeave:

• CoreWeave’s revenue is significantly driven by Microsoft, its largest client, which accounts for 62% of its income. The company operates a vast network of over 250,000 GPUs across 32 data centers. In 2024, CoreWeave generated an impressive $1.92 billion in revenue.
• With more than $15 billion in unfulfilled contracts, CoreWeave has considerable growth potential as demand for AI infrastructure continues to surge.
• CoreWeave’s CEO and co-founder, Michael Intrator, sold approximately $160 million worth of shares, alongside Brian Venturo and Brannin McBee, the other two co-founders. However, they still retain control of the company.
• The company has secured an $11.9 billion, five-year deal with OpenAI, further solidified by a $350 million private placement of CoreWeave shares during the IPO. This partnership enhances CoreWeave’s position ahead of its public debut.

Klarna

• Estimated valuation: $14.6 billion

Swedish Buy Now, Pay Later (BNPL) giant Klarna is preparing for a U.S. IPO, aiming to raise at least $1 billion, targeting a valuation of more than $15 billion. The company filed with the Securities and Exchange Commission (SEC) in November 2024 and plans to list on the New York Stock Exchange (NYSE), potentially pricing in early April. Here is a brief overview of Klarna:

• Backed by venture capital firms like Sequoia Capital, Klarna has partnered with major banks, including Goldman Sachs, JPMorgan, and Morgan Stanley, to assist with the IPO process.
• Ahead of the IPO, Klarna is streamlining operations by selling assets, cutting costs, and leveraging AI to improve efficiency. It has sold its UK loan portfolio and is in talks to offload part of its U.S. loan book.
• Klarna’s valuation has fluctuated, reaching a peak of $45.6 billion in 2021 before dropping to $6.7 billion in 2022.

Chime Financials

• Estimated valuation: $25 billion

Chime Financial, a leading fintech firm based in San Francisco, has filed for a U.S. IPO, targeting a public debut in 2025. While the exact timing remains fluid, Morgan Stanley is spearheading the offering. Here is what potential investors need to know about Chime:

• Chime has raised $2.65 billion to date and was valued at $25 billion in 2021.
• Operating an asset-light model, Chime offers no-fee digital banking services, including digital payments, credit history, and checking and high-yield savings accounts through partnerships with institutions insured by the Federal Deposit Insurance Corporation, like The Bancorp Bank and Stride Bank.
• The company recently introduced early paycheck access of up to $500 and acquired Salt Labs to expand enterprise partnerships, further enhancing its competitive edge in the fintech market.

Genesys Cloud Services

Genesys, a leading AI-driven call center software developer, has postponed its IPO, which was originally planned for April or May 2025, due to increased stock market volatility and regulatory uncertainties.

Despite strong backing from investors like BlackRock, Salesforce, and Zoom, along with top underwriters Goldman Sachs, Citigroup, and JPMorgan Chase, the company now aims for a later 2025 listing. Here is more info on Genesys:

• Genesys confidentially filed in late 2024, targeting up to $2 billion in funding.
• The postponement comes amid concerns about AI’s evolving role in customer service, broader market instability, and the potential for private equity interest.
• This marks the second time Genesys has delayed its IPO. As a similar attempt in 2022 didn’t materialize, the company is now waiting for more favorable market conditions.

Nouryon

• Estimated valuation: $13 billion

Carlyle Group has filed for an IPO of Nouryon, a European specialty chemicals producer, potentially valuing the company at $13 billion. The listing may occur in the second half of 2025. Here is more information on Nouryon:

• Nouryon, which manufactures chemicals for agriculture, paints, coatings, and personal care, was acquired by Carlyle and GIC in 2018 for €10.1 billion.
• The IPO is part of a broader trend of companies planning US listings as market conditions improve.

eToro

• Estimated valuation: $5 billion

eToro, the social investing platform, has confidentially filed a draft Registration Statement with the SEC for its proposed IPO in the US. While share numbers and price range are yet to be determined, the IPO could value the company at $5 billion. Below are key highlights of eToro’s IPO:

• The offering is expected to occur after the SEC’s review process, potentially in the second quarter of 2025.
• Founded in 2007, eToro offers a multi-asset platform for trading crypto, stocks, and commodities.
• The company was valued at $3.5 billion in March 2023 after raising $250 million, having previously considered a special purpose acquisition company (SPAC) merger for its IPO, which was called off in 2022.

Medline Industries

• Estimated valuation: $50 billion

Medline Industries, a medical supply company, is planning an IPO as early as the second quarter of 2025, aiming to raise approximately $5 billion and achieve a market value of around $50 billion. Medline has filed a confidential draft registration statement (Form S-1) with the U.S. Securities and Exchange Commission (SEC) for the offering. More on Medline:

• This is Medline’s second attempt at going public, following an initial public debut in 1972 and a return to private ownership five years later.
• The company is owned by private-equity firms Blackstone, Carlyle, and Hellman & Friedman, which acquired Medline in a $34 billion deal in 2021.
• The number of shares and pricing details are yet to be determined, with the offering subject to market conditions and SEC approval.

Reliance Jio

• Estimated valuation:$120 billion

Reliance Jio Infocomm, one of India’s largest telecom operators, is preparing for an IPO, which is expected to raise between $4.08 billion and $4.66 billion. Reliance is worth attention globally due to its size and ambitions. Here is more information on Reliance Jio:

• Valued between $100 billion and $120 billion, this could be the largest IPO in India and is planned for the second half of 2025.
• The offering will include new shares and an offer for sale (OFS) component, with foreign investors who own 33% of the company potentially exiting via the OFS.
• Jio has expanded into AI through a partnership with Nvidia and secured approval for satellite internet services, and it continues to lead with 460 million wireless subscribers.

2025 IPO market trends: Navigating the minefield of unpredictability

The 2025 IPO market is influenced by several factors: stabilizing interest rates and surging AI adoption offer growth opportunities, while geopolitical tensions and market volatility create unprecedented challenges. Here is a detailed breakdown of these trends:

Interest rates are likely to stabilize

Interest rates are projected to stabilize near 3.5% after years of volatility, potentially creating a friendlier environment for companies to go public. Lower borrowing costs can reduce pressure on valuations, making it easier for firms to attract institutional investors seeking growth opportunities.

Fed Funds target rate (June 2022–December 2024) with market projections extending through 2025. Source: EY

AI and LLM adoption is on the rise

Generative AI and large language models (LLMs) are revolutionizing industries, with Bloomberg projecting $1.6 trillion in revenue by 2032, up from $93 billion in 2023. This rapid growth will be driven by over $2 trillion in capital expenditures, with private markets leading early funding.

However, public markets will play a crucial role in supporting long-term development, providing the scale and liquidity needed for sustained innovation. The economic impact of AI will expand, creating significant opportunities for investors and tech companies in this transformative sector.

As AI-driven companies scale, investors’ demand for high-growth opportunities may drive more AI-focused IPOs in 2025. Public listings can provide crucial funding for commercialization, while increased market scrutiny may challenge inflated valuations.

2025 stock market volatility tests upcoming IPOs

The U.S. IPO market in 2025 is experiencing turbulence due to geopolitical uncertainties, economic volatility, and a sharp decline in the stock market, all of which have dampened confidence in Wall Street circles. High-profile listings, such as Genesys, are encountering challenges amid fluctuating valuations and recession risks.

While 2024’s IPOs raised $10.2 billion, marking a 41% year-over-year increase, post-listing performance has been weak, with shares of major issuers down 15% on average. Now companies are delaying public debuts, reflecting a cautious “wait-and-see” approach in an unpredictable market.

S&P 500 YTD through March 10, 2025. Source: U.S. Bank

Risks and challenges for companies going public

The path to an IPO is fraught with complexities, from navigating regulatory mazes to winning over skeptical investors. 

Regulatory hurdles

Going public demands rigorous adherence to SEC regulations, including detailed financial disclosures, internal control audits, and transparency on risks like customer concentration (e.g., CoreWeave’s 62% reliance on Microsoft). New rules around data privacy and AI ethics add more complexity to AI firms.

Startups often underestimate the cost of compliance and IPO paperwork. Legal fees, accounting oversight, and investor reporting can drain resources pre-IPO. To mitigate this, companies engage third-party auditors and adopt governance frameworks early, even if it delays their listing timeline.

Market volatility

Market volatility remains a critical challenge for the IPO activity, even for companies with strong financials. CoreWeave’s $35 billion valuation, for example, depends on sustained AI momentum and stable interest rates.

However, unexpected shocks, such as Taiwan’s semiconductor risks or disruptive competition, can rattle investors and disrupt companies planning to raise capital. A prime example is NVIDIA’s stock drop following DeepSeek’s AI model release. To navigate these uncertainties, companies must maintain flexible IPO timelines, secure alternative private funding, and diversify revenue streams before going public.

Investor scrutiny

Public investors typically seek a balance between growth and profitability, often creating a challenging path for tech firms. Companies usually get ahead of investor concerns by tackling red flags early.

CoreWeave, for example, is leaning on its $15 billion contract backlog to reassure the market about future revenue, while Klarna has offloaded millions in non-core assets to sharpen its focus and improve profitability.

Leadership teams may also run “roadshow rehearsals” to fine-tune their pitch, ensuring they can clearly articulate long-term profitability and growth strategies to investors.

Additional reading: Use a comprehensive due diligence checklist to uncover IPO risks.

Operational transparency

Private companies operate behind closed doors, but going public means constant scrutiny. CoreWeave’s massive energy commitments (1.3 gigawatts contracted) will now be under the investor microscope, while Chime’s asset-light banking model will need to address concerns about its reliance on third-party partners.

Once public, even minor missteps, whether supply chain disruptions or PR blunders, can send stocks tumbling. To stay ahead, companies must stress-test their operations, ensuring AI-driven systems can scale under pressure, and strengthen governance by bringing in independent directors for sharper risk oversight.

How investors can prepare for 2025’s most anticipated IPOs

With IPO announcements like CoreWeave and Klarna dominating headlines, investors must adopt rigorous due diligence to separate hype from sustainable value. Below are actionable strategies to evaluate IPOs, focusing on financial health, market positioning, and leadership credibility:

#1. Scrutinize financial statements beyond top-line growth

While revenue growth (e.g., CoreWeave’s 737% YoY surge) grabs attention, dig deeper:

• Profitability metrics. Assess gross margins. For example, CoreWeave’s 76% Q4 2024 margin signals pricing power, while net losses ($863M in 2024) raise sustainability questions.
• Debt and cash flow. High debt or negative cash flow could strain post-IPO operations.
• Customer concentration. Overreliance on a few clients (Microsoft accounts for 62% of CoreWeave’s revenue) heightens risk.
• Forward-looking contracts. Unfulfilled contracts indicate future revenue but require execution certainty.

Tip: Compare pre-IPO financials to industry benchmarks. For example, AI infrastructure firms should outpace legacy cloud providers in margin scalability. 

#2. Evaluate market potential and competitive moats

Not all initial public offerings thrive in crowded markets. Focus on:

• Total addressable market (TAM). Prioritize companies in high-growth sectors (e.g., AI infrastructure’s projected $1.6T revenue by 2032).
• Differentiation. Does the company have a defensible edge? CoreWeave’s Nvidia GPU exclusivity contrasts with generic cloud providers.
• Regulatory and macro risks. Geopolitical tensions, like current trade wars, or interest rate shifts can derail growth.

Case Study: Klarna’s pivot towards AI is a strategic response to the saturation of the BNPL market. However, its $15 billion IPO valuation relies heavily on proving that its business model can scale effectively.

#3. Assess leadership teams and governance

Strong leadership is critical for navigating post-IPO challenges:

• Track record. CEOs with prior exits or scaling experience inspire confidence.
• Equity stakes. High insider ownership aligns interests with shareholders.
• Board composition. Independent directors with sector expertise reduce governance risks.
• Adaptability. How did management handle past downturns? Genesys’ 2022 IPO delay, repeated in 2025, signals execution risks.

Red flags: Overhyped “vision” without operational milestones or frequent strategy pivots pre-IPO.

4. Monitor pre-IPO investor sentiment and pricing

• Institutional backing. Tier-1 underwriters (e.g., Morgan Stanley for CoreWeave) signal credibility.
• Valuation realism. Compare IPO pricing to peers. CoreWeave’s $35 billion target vs. the $11.9 billion OpenAI deal offers context.
• Lock-up periods. Early insider sales post-IPO can indicate confidence (or lack thereof).

Pro tip: Keep an eye on secondary market activity to gain insights into the urgency of private investors looking to exit.

5. Leverage virtual data rooms (VDRs) for In-depth due diligence

Institutional investors rely on virtual data rooms (VDRs) to access confidential, granular details about IPO candidates. IPO targets often use these secure platforms to house critical documents not always disclosed in public filings:

• Financial audits. Historical revenue breakdowns, expense trends, and off-balance-sheet liabilities.
• Customer contracts. Terms of major deals and renewal risks.
• Legal disclosures. Pending lawsuits, regulatory inquiries, or intellectual property disputes.
• Cap tables. Pre-IPO ownership stakes and dilution risks post-listing.

Additional reading: Explore the top three virtual data room vendors for IPOs in 2025.

The bottom line

• AI and fintech take center stage. CoreWeave’s $35 billion IPO and Klarna’s $14.6 billion valuation underscore the dominance of AI and fintech, but long-term success hinges on steady demand and market stability.
• Volatility remains a key risk. Trade disputes, interest rate fluctuations, and geopolitical uncertainties, especially trade wars, complicate IPO timing, as seen with Genesys’ delay.
• Investors remain cautious. Institutional skepticism highlights the need for disciplined due diligence and realistic pricing strategies.