Reuters: IPOX® Analyst Lukas Muehlbauer on Conservative IPO Pricing Amid Big Debuts
Reuters reported that a wave of strong U.S. IPO debuts has reignited debate over whether Wall Street banks are pricing offerings too cautiously, potentially leaving billions in proceeds on the table for issuers. Recent listings, including Figma and Circle, saw first-day gains of 250% and 168% respectively, far above the 15%–20% range analysts typically view as healthy.
In the article, Lukas Muehlbauer, research associate at IPOX®, highlighted the rationale behind conservative pricing:
“In today’s market, conservative IPO pricing is a strategic choice designed to build positive momentum and long-term brand equity (for issuers).”
He added that a strong debut also helps companies more easily raise follow-up capital.
The piece further noted that while modest pricing may reduce issuer proceeds, it provides stability amid heightened volatility, trade policy uncertainty, and shifting retail investor participation. With major names like Klarna and Gemini preparing for listings, the debate over IPO pricing strategy is set to intensify this fall.
Read the full article by Manya Saini and Niket Nishant on Reuters: https://www.reuters.com/business/finance/strong-market-debuts-raise-questions-over-cautious-ipo-pricing-by-wall-st-banks-2025-08-21/
