Strong market debuts raise questions over cautious IPO pricing by Wall St banks

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Strong market debuts raise questions over cautious IPO pricing by.jpeg

Written by Mana Sene and Nichet Nishant

(Reuters)-Today’s first day’s gains by the last prominent US lists raised questions about whether Wall Street’s banks are cautious about fluctuations and economic certainty of sweeping American definitions-pricing them with great caution, and benefits investors, but caused the exporters to miss.

The average number of subscriptions in the United States this year-including the Figma and Stablecoin-Stable-Stalcoin-average of pop music, was 36 %, which are Reuters accounts using the data collected by LSEG.

This was much higher than 15 % to 20 %, as analysts considered the sweet place, which is enough to reward investors to risk without reducing the offer price.

If the twentieth of its lists was priced closer to this range, companies could have set 6.1 billion dollars in revenue, as a separate analysis of Dealogic data showed.

Banks are often accused of initial subscription subscriptions to avoid embarrassing fluctuations. But the subscriptions are more cautious because the first subscribers suspended for years due to the high interest rates are looking to appear for the first time amid the concerns of tariffs and the volatile demand for retail, according to four analysts, and two executives in the investment capital and industry experts.

“In today’s market, conservative public subscription pricing is a strategic option designed to build positive momentum and long -term brand rights (for exporters),” said Lucas Mohalepoor, IPOX research analyst at IPOX.

He said that the first strong appearance makes it easier for companies to take advantage of the follow -up capital.

Figma shares have emerged by 250 % and 168 % circle in their first appearance. Crypto Excination Bullish closed its first session by approximately 84 % from the subscription price.

The companies and their leading controls have refused to comment or not respond to the requests that seek to get the comment.

The “broken” process

The market disturbances raised by the World Trade War of Trump retreated from the chances of the first quarter in the first quarter for deals, but optimism about his motor policies and expectations in the discounts he received help in obtaining new records and reviving the public subscription market.

While the modest pricing may attract investors in the volatile markets, critics said it will be at the expense of exporters who may raise less capital.

“The public subscription” is a reminder that the operation is still broken.

“The traditional offer to secure obligations from institutional investors has been designed, and it has a large extent in calculating what we see important levels of the retail investor request.”

This blind spot leaves banks to guess how retail buyer will respond on the first day, which increases the chances of sharp commercial fluctuations.

However, some Fintech brokerage firms such as Robinhood and Sofi Technologies exploit the demand for retail by providing access to public subscription shares in chosen companies.

“The public subscription market has been closed for a period of three years. So if you are a banker for investment, you do not know what demand,” said Thomas Tongos, founder of the Investment Capital theory company.

Tongz said that startups that are preparing for the public may return against conservative prices.

The fall of the public subscription is formed to be one of the most crowded for years, as KLARNA giant in Fintech, Crypto Exchang Gemini and Medtech Medline lead the race to take advantage of the investor’s request to confuse before the end of the year.

The Renaissance IPO index, which tracks the performance of some of the newly listed shares, increased by 15 % in 2025, exceeding the S&P 500 standard.

Specialized alternatives

For years, critics of the public subscription process promoted direct lists – where exporters are deployed by placing the shares directly to the stock exchange without the help of insurance companies – to avoid the poor judgment on the request.

This path has been taken through the Spotify and Crypto Excination Coinbase in recent years.

But it has gained a limited traction in the United States, as companies prefer to stabilize the traditional bid system for public subscription and support trading provided by the guarantees.

“The traditional public subscription track is just an experience and tested, and it is more than one direct list,” said Mike Pilin, the PWC US Public Services Commander.

The acquisition companies were described for special purposes or SPACS, where the listed Shell was combined with a private company, as an alternative to traditional subscriptions, but they went through a boom and a decline between 2020 and 2022.

Although the road is recovered this year, especially between encrypted and highly developed arrows, it remains restricted to organizational obstacles, the dangers of redemption and the fluctuation of stocks.

“If you are dealing with my company at the present time, I will do it in the way people were doing, even if I knew that there are wrong risks,” said Maria Palma, the General Saturday Capital.

(I participated in the reports of Manaa Saini and Niket Nishant in Bangaluru; edited by Michelle Price and Aaron Coyure)

2025-08-21 17:44:00

2 3 minutes read