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Initial public offerings

Tech Sector Sees Resurgence in IPOs with Favourable Market Conditions

Strategic Insights

— 1 min read

The technology sector is witnessing a remarkable revival in initial public offerings (IPOs) in 2025, marking a shift in market sentiment after years of subdued activity. Improved economic conditions, stabilising inflation, and a more predictable regulatory environment have contributed to a solid foundation for investor confidence, particularly in high-growth areas like artificial intelligence (AI), fintech, and blockchain. Recent IPO filings reflect this growing confidence, with three major tech companies, Figma, BitGo, and Avalara, choosing to go public this week, signaling a renewed appetite for market listings.

Key Takeaways:

  • Figma, a cloud-based design software company, is targeting a valuation of US$13.65 billion and plans to raise up to $1.03 billion in its IPO, aiming for a listing on the New York Stock Exchange under the ticker symbol "FIG".
  • Figma reported a 46% revenue increase and tripling its net income in early 2025, positioning it as a leader in the fast-growing design software market.
  • BitGo, a crypto custody provider, has confidentially filed for an IPO, capitalising on the growing demand for blockchain and cryptocurrency-related services, with its valuation expanding to $4 trillion.
  • Avalara, a leading tax automation platform, is preparing to return to the public markets after being taken private in 2022, serving global brands such as Adidas, Crocs, and Reebok.
  • Global IPO activity in 2025 has already raised $61.4 billion, a 17% increase compared to the same period last year, with the United States leading the way with 109 IPOs in the first half of the year.
  • Sectors like AI, fintech, and blockchain are driving investor interest, with companies like Figma, BitGo, and Avalara demonstrating strong growth and defensive positions in the market.
  • Investor appetite for tech stocks remains robust, with high-growth sectors continuing to dominate the IPO landscape, and favourable market conditions expected to support tech listings throughout 2025.

Statistics:

  • Figma's revenue increase in early 2025: 46%
  • Figma's IPO target valuation: US$13.65 billion
  • Amount Figma aims to raise through its IPO: up to $1.03 billion
  • Global IPO activity in 2025: $61.4 billion
  • Increase in Global IPO activity compared to the same period last year: 17%
  • Number of IPOs in the United States in the first half of 2025: 109

Sources:

  • [Bloomberg]
  • [The New York Times]

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