The year 2026 is setting up to be the hottest year for IPOs in a long time. In fact, we may see the largest IPO ever come to market this year, and there’s a good chance we see several IPOs hitting the $100 billion threshold – so-called centicorns – that will get investors’ hearts racing.
In 2026 the IPO market will be boosted by a general positive outlook for stocks. The S&P 500 has turned in three straight years of double-digit returns, helping to juice investors’ “animal spirits.” It’s also supported by interest rates, which, while still elevated from recent years, are expected to fall in the months ahead.
That’s already a far cry from just a few years ago, when the IPO market was all but frozen. In 2022, the Federal Reserve was aggressively raising short-term interest rates to fight inflation.
Stocks plummeted that year, and so did IPOs, from 1,078 debuts in 2021 to 202 the next year, according to the Securities and Exchange Commission. IPOs dipped further in 2023, to just 169.
So, it’s important that companies take advantage of the “IPO window” when it’s open. They max out their valuation, raise more money, and generally set a winning tone for the company. If they don’t hit the window, an IPO might not debut until years later, maybe even at a lower valuation.