Archive · 28 Jun 2025
Citigroup Sees Increasing IPOs Amid Private Market Valuations
Big companies are staying private longer, but soon, many will decide to offer stock to the public (IPOs).
This is because they are getting big and need more money.
Citigroup thinks this trend is happening because of new technologies like artificial intelligence and robotics.
Investors want to invest in these types of companies, but they can't always find them in the stock market yet, so they are watching closely.
Some big companies, like SpaceX, are selling stock to some investors to give them cash.
Publicly traded tech companies are raising funds, which hints more companies will choose the public market.
Having stock that the public can buy also makes it easier to buy other companies because there's a fair price.
Citigroup anticipates a surge in initial public offerings (IPOs) as companies stay private longer and boost valuations.
Private placements are increasing, especially in sectors like AI and robotics, where public market exposure is limited.
Elon Musk's SpaceX, OpenAI, and others use secondary sales to offer liquidity to investors and employees.
Public tech companies are selling zero-coupon convertible bonds, signaling a potential increase in growth IPOs.
An IPO provides companies with a liquid security for acquisitions and demonstrates independent valuation.
- Who
- Citigroup, investors, and private companies.
- What
- A wave of big initial public offerings is expected, driven by companies staying private longer and raising valuations through private sales.
- When
- Citigroup sees the trend building now.
- Where
- New York (Citigroup Private Company Growth Conference).
- Why
- Companies are staying private longer, creating a backlog of quality companies poised for IPOs, fueled by investor interest and the need for capital.
Focus of Growth
Growth Strategy
Kore.ai's Approach
Focus of Growth
Emphasis on growth via acquisitions and potential IPO.
Growth Strategy
Focus on current business performance and existing momentum.
- Main Source
- Bloomberg
- Citigroup Head of Private Placements
- John Collmer
- Secondary Sales Market Size
- $60 billion
- Ramp Business Corp. Valuation
- $13 billion
- Kore.ai Valuation (2023)
- $800 million