The anticipated recovery of the IPO market in 2024 has yet to materialize. High interest rates and uncertainty surrounding the U.S. election have led many companies to remain private, waiting for improved market conditions. Despite this, some firms did go public earlier this year, including Ibotta, an enterprise rewards platform that went public on the NYSE on April 18.
Ibotta’s IPO was initially priced at $88 per share and debuted at $117. However, it has since dropped to $63, with a market cap of $1.7 billion. CEO Bryan Leach remains optimistic about the decision to go public, noting that companies trying to “time the market” could be making a mistake. He emphasized that going public is not a final destination but rather a phase in a company’s growth.
Many companies that were expected to go public in 2022 or 2023 are still holding back. In contrast, Ibotta went public after waiting for six quarters of profitability, which Leach believes was a wise choice. The company has benefited from the increased legitimacy that comes with being publicly traded, which has helped it secure deals, including one with Instacart, and attract talent.
While the IPO market has slowed dramatically since its 2021 peak, with only 37 IPOs in the first half of 2024, there are signs that interest rates could lower, possibly opening the door for more companies to go public in 2025.