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Can America Reclaim the Stock Market via the U.S. IPO Market?
Domestic IPOs aim to revive American leadership amid shifting global market ownership.
February 27, 2025 | Kevin Whiteley
"Investors continue to favor scaled, profitable companies with sensible balance sheets and durable cash flows, especially as rates may be staying higher for longer."
- Matt Warren, Head of Americas Equity Capital Markets (cash origination), Bank of America
Reuters Article
By Echo Wang, Tatiana Bautzer and Saeed Azhar
January 10, 2025 at 4:19 PM EDT
Investment bankers are gearing up for a pickup in dealmaking activity in global equity capital markets this year, buoyed by a promising pipeline of anticipated initial public offerings of several high-profile companies. An increase in capital markets activity, driven by improving economic confidence, is expected to be a major boon for several of these private equity-backed companies.
DeepSeek, an evolving economy, and the developing trade war are seemingly proving simultaneously volatile and somewhat bullish to exchanges and markets.
Investors are sustaining anticipation, awaiting full outcomes of new, trade policies, which thus far are pushing related markets into adjustment periods. Additionally, many continue looking to stocks as America’s consumer-facing economy recovers.
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However, a closer examination avails only 59 percent of S&P’s earnings originate in the U.S. Nearly half (41 percent) the exchange’s returns are going abroad—up 13 percent from 2023.
The majority of trading in U.S. stocks alone has been happening in other countries—“on course to account for a record 51.8 percent of traded volume in January [2025].”
Holdings of U.S. securities are increasingly part of foreign portfolios, with non-U.S. investors owning $26.9 trillion in assets by end of Q2 2023. Reliance on China and other, foreign nations has been an incremental progression over time—especially from 2000 to 2020.
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Alternately, consider options in the U.S. IPO market, as North American investors can perpetuate strengthening domestic markets. Energy, healthcare, industrials, aerospace & defense, and consumer goods currently have offerings in target, buying prices as public, capital markets continue their rebound.
Infinity Natural Resources, Inc.(INR), trading at roughly $20 per share currently, has a market capitalization of $1.16 billion, raised $265 million in proceeds, and is sustaining its annual range. The West Virginia-headquartered energy company targets areas along the Appalachian basin for its developments.
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Venture Global, Inc. (VG), one of the two, largest LNG exporters in America, collected $1.75 billion in proceeds, holds a market capitalization of over $37 billion, and presently has an annual, trading range of $15-$25.50 per share. This Virginia-based energy entity has issued nearly 451-million shares and operates along the U.S. Gulf Coast.
Metsera, Inc. (MTSR), a New York-based biotech company specializing in obesity treatment, hit a $2.7-billion valuation and has a market capitalization of $3.33 billion. It’s trading at nearly $30 per share, with over 105-million shares outstanding. The weight-loss stock appears to be performing on an upward trajectory, staying within the higher end of its annual range.
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Smithfield Foods, Inc. (SFD), a packaged-meats company in Virginia, saw an overall valuation of $7.7 billion, collected proceeds totaling almost $522 million, but has increased in market capitalization (roughly $8.3 billion) since its second IPO. Trading at nearly $22 per share steadily, the consumer-goods business is performing on the high end of its 52-week range with around 393-million shares outstanding.
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Karman Holdings (KRMN)—a California-based, Trivia Capital-backed aerospace/defense company—recently launched a successful IPO, with a market capitalization of $3.88 billion. Shareholders raised just north of $500 million, selling 23-million shares above market range[5]. It’s currently trading at $29 per share—a positive increase from its IPO, share price.
As the IPO landscape evolves, investment banks and investors are poised to capitalize on emerging opportunities. Despite recent obstacles, the market exhibits a cyclical nature, suggesting potential for a steady recovery.
Factors like anticipated, interest-rate cuts and strong, market valuations further bolster confidence in a resurgence of IPO activity.
Engaging with the IPO market now positions stakeholders to navigate and benefit from these developments, seizing opportunities that align with their strategic objectives.
We invite you to explore and participate in these exclusive opportunities.
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(Disclaimer: This content is for research purposes only and does not constitute financial advice. Market capitalizations and share prices may change without notice.)
Article References
https://www.reuters.com/markets/quote/.SPX/
https://www.whitehouse.gov/presidential-actions/2025/01/america-first-trade-policy/
https://www.apolloacademy.com/the-problem-with-the-current-sp-500-narrative/
https://www.visualcapitalist.com/visualizing-the-sp-500s-domestic-and-foreign-revenues/
https://ticdata.treasury.gov/resource-center/data-chart-center/tic/Documents/shla2023r.pdf
https://www.visualcapitalist.com/cp/biggest-trade-partner-of-each-country-1960-2020/
https://www.apolloacademy.com/trade-war-statistics/
https://infinitynaturalresources.com/about-us/
https://ventureglobal.com/about-us/
https://www.reuters.com/business/energy/venture-global-lng-raises-175-bln-after-pricing-us-ipo-2025-01-24/
https://metsera.com/