The post Crypto and tech companies are leading gains in US IPO market appeared on BitcoinEthereumNews.com.

Newly public tech and crypto companies are big beneficiaries of renewed investor interest in the U.S. IPO sector.  Investors are trading the shares of newly listed companies enthusiastically, hoping for a company that will deliver consistent gains. The sudden increase in investor interest in IPOs is sending shares of newly public companies soaring on their first day of trading. This enthusiastic trading resulted in the most fervent first-day trades the U.S. market has seen since the boom days of 2021. The IPO wave is at historic levels The recent streak of strong market debuts includes a 140% gain for the drone tech firm Airo Group Holdings Inc., a 168.5% increase for the stablecoin issuer Circle Internet Group Inc., and a jaw-dropping 735% surge for cable network Newsmax Inc. earlier this year. Each of these firms raised over $50M in their offerings. Much of the momentum behind these IPOs is driven by professional traders and retail investors piling in on the first day. Many of these buyers, however, weren’t able to secure shares during the actual IPO process, as that is typically reserved for large mutual funds and institutional investors committed to long-term positions. As a result, the post-listing surge is often a product of market hype. “The companies that see huge day-one pops are typically younger, harder to value, and generate significant retail buzz,” Jay Ritter, a finance professor at the University of Florida who has studied IPO performance for decades, said. “What’s true about most of these companies is that they are not mature and they are hard to value.” Between 1980 and 2023, 316 companies saw their shares double on debut. However, nearly 90% of them suffered negative returns over the next three years, with an average decline of 46% from their day-one closing price. In essence, the…

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Filed under: News - @ June 16, 2025 10:20 pm