In a remarkable turn of events leading up to its public offering, the tech unicorn Figma (FIG) saw its shares priced at $33. However, upon closing its inaugural trading session on July 31, the stock surged to an impressive $115.50, marking an astonishing 250% increase from its initial pricing.
This trend of significant IPO gains has been prevalent in the tech sector. Just two months prior, Circle Internet Group (CRCL), a stablecoin infrastructure operator, priced its IPO at $31, only to close its first day of trading on June 5 at $83.23, representing a 165% jump.
According to IPO advisory firm Rainmaker Securities, IPOs recorded an average first-day performance of 27.5% in the first half of 2025, just shy of the decade-high of 29.2% set in 2021 and nearly double the 15% seen during the same timeframe last year. The 20 largest offerings of 2025, out of 241 US IPOs so far, exhibited even larger gains, with first-day pops averaging 36%.
Data from the New York Stock Exchange reveals that the tech sector has witnessed the largest average hike on the first day of trading, tallying 36.3% over the past year. This sector has also recorded the second-highest concentration of share prices that opened above their expected range over the past 12 months, at 41%, second only to consumer goods. In contrast, more traditional sectors such as materials and consumer services have generally seen their IPOs open within anticipated price ranges.
Recently, Figure Technologies (FIGR), a stablecoin issuer, debuted with a notable 44% increase from its IPO price to its opening mark, although it surrendered some of those gains by the close of its first trading day.
Tech offerings on the NYSE have raised more funds than any other sector, accumulating over $13.5 billion in 2025. Greg Martin, managing partner at Rainmaker Securities, stated that the tech sector’s frequent high IPO pops may be attributed to fundamental reasons. The fast-paced growth and unpredictability of these companies make it difficult to accurately assess their value.
“Because it’s so much predicated on what [tech companies are] going to do in the future … it’s just a much harder exercise,” Martin explained. In particular, the crypto-related fintech realm has generated considerable investor interest this year. Following Circle’s success, Bullish (BLSH), a fintech crypto exchange, priced its IPO at $37 in August and closed its first session at $68, a gain of over 80%.
Despite the growing enthusiasm for tech IPOs, history suggests that stocks with high initial excitement often underperform in the long run. Economist Domonkos Vamossy noted that IPOs characterized by tremendous fervor tend to lag behind less-hyped offerings by more than 8%. Figma, which opened at $85, is currently trading around $54, a notable reduction from its first-day close of $115.50, yet still approximately 64% above its IPO price.
While the dynamics of the market can lead to corrections after initial exuberance, the current climate suggests the IPO momentum is unlikely to slow down. In fact, US companies with market capitalizations of at least $50 million have experienced a 53.1% increase in IPOs compared to last year, according to Renaissance Capital. This resurgence in deal-making is indicative of a market that is moving towards historically higher ground.
