Small Cap
Priya Nigam
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March 10, 2025
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Benzinga
Priya Nigam
·
March 10, 2025
·
Benzinga
The year 2024 saw a meaningful recovery in U.S. IPO (initial public offers) activity. The number of IPOs surged by 38% to 176 in 2024, with seven deals topping $1 billion.
The total proceeds grew by 48% to $33 billion, signaling renewed market confidence. After last year's recovery, 2025 is shaping up to be even more dynamic. The activity suggests that U.S. IPOs are poised to accelerate in 2025. Despite the volatility in the U.S. stock markets during the first few months of the year, 36 new IPOs have been priced year-to-date, marking a 60% increase compared to the same period last year.
Why IPOs Are Compelling for Investors?
IPOs offer investors the opportunity to invest in companies at their early stages, offering the potential for significant returns as the company grows. While the risk of investing in a smaller stock is much higher than buying the stock of an established company, IPOs are undeniably appealing for the potential of exceptional share price gains.
Top Performing IPOs in 2025
Shares of Diginex Ltd (NASDAQ:DGNX) have rallied almost 600% year to date. This represents among the highest share price performance on the Nasdaq in a decade.
The company, which leverages blockchain, machine learning, and data analytics to streamline ESG, climate, and supply chain reporting, went public on Jan. 22 under the ticker DGNX.
Given the phenomenal post-IPO performance, Founder and Chairman Mr. Miles Pelham was invited to ring the closing bell at Nasdaq's Times Square, New York headquarters on March
Diginex's stock rally underscores the broader trend of investor appetite for sustainable investing. With consumers, regulators and investors increasingly prioritizing ESG-conscious companies, there has been a rise in demand for sustainable finance, ethical supply chains, and carbon footprint reduction technologies.
At the event, Kristina Ayanian from the listings team at Nasdaq said, "Diginex's is the best performing Nasdaq IPO in a decade—it's an incredible success! This exceptional growth makes Diginex the best-performing small-cap stock so far in 2025 and has got a resounding thumbs up from the global investment community."
Founder Miles Pelham emphasized that the funds raised at the IPO would support the company's journey to gain a leadership position in the sustainable RegTech industry.
Other IPOs That Delivered Large Returns
Skyline Builders is a civil engineering services provider based in Hong Kong. The company raised total gross proceeds of $6 million in the IPO on Jan. 25. Proceeds from the offering are planned for hiring additional staff, strengthening its market position, acquiring machinery to increase capacity, and brand building activities.
Founded in 2018, Mint Inc. is a Hong Kong-based interior design and fit-out works provider for commercial properties. The company raised total gross proceeds of $8.05 million from the offering on Jan. 10, which it intends to use for expanding its business and geographic coverage to the U.S. and UK and for making strategic investments and acquisitions.
This clinical-stage biotechnology company develops therapies for cancers, chronic hepatitis B, and age-related diseases. Based in Mainland China, the company raised $126.4 million from the offering on Jan. 28. It became the first Chinese life sciences company to complete a US listing.
A Hong Kong based holding company that provides publicity planning and marketing services to mobile game developers. CTRL Group raised gross proceeds of $8 million from the Offering on Jan. 22.
Upcoming IPOs in 2025
Here are some of the most awaited IPO this year:
The IPO market shows strong potential for 2025. A Federal Reserve interest rate cut or favorable policy changes would further support IPO activity.
Read More:
Image created using artificial intelligence via Midjourney.
March 10, 2025
·
Benzinga
March 10, 2025
·
Benzinga
March 10, 2025
·
Benzinga
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