Chime advances towards IPO as market stabilizes

In recent weeks, the IPO market has shown signs of revival, particularly in the United States, where several companies have taken steps to go public. On Tuesday, May 9, 2025, Chime, a fintech company, submitted its paperwork for an initial public offering (IPO) on the Nasdaq stock exchange. This news came shortly after another stock brokerage platform, eToro, enjoyed a successful public debut, signaling growing confidence in the market. The broader stock market has been on an upswing, with the S&P 500 erasing its year-to-date losses as tariff pressures eased, leading to an environment more conducive for companies to go public. Before this stabilization, many firms had paused their IPO plans due to heightened uncertainties triggered by tariff announcements in early April 2025. Multiple companies, including Hinge Health and Omada, have also filed for IPOs, showcasing a renewed interest in going public amid favorable market conditions. Matt Kennedy, a senior IPO market strategist at Renaissance Capital, emphasized that companies are feeling more emboldened to face the market now that fears around tariffs have lessened. He noted that since April 8, shares have rallied around 33%, fostering optimism for a surge in IPO activity. However, Mark Schwartz of EY urged that ongoing stability in the stock market is critical for a significant rebound in IPOs to unfold. While historically, the average number of operating companies going public has been around 114 each year from 2001 to 2024, the landscape has shifted with many startups favoring private markets, where there are fewer pressures to seek public listings.