The 2026 IPO market started the year on reasonably steady footing as nine listings raised a combined $2.6 billion in January. Despite a mounting backlog of startups indicating IPO plans this year, many initially stayed on the sidelines and let others test the waters after a volatile 4Q25, resulting in both deal count and proceeds coming in below January’s 10-year average (10 IPOs and $3.9B, respectively). The industrials sector produced the month’s two largest IPOs, led by equipment rental platform EquipmentShare.com, as more investors sought out fast-growing companies viewed as resistant to AI disruption. The fintech trend that took hold in 2025 continued into the new year, while the previously-dormant biotech industry showed signs of a rebound. January IPOs averaged a mere 2.9% from offer, with four of the nine trading down. After a short rally, the Renaissance IPO Index dropped in the final week of the month and finished with a 2.1% loss, underperforming the S&P 500’s 1.5% gain, amid uncertainty around AI spend and competition. If returns disappointed, new filings were a bright spot, as 22 companies joined the pipeline, including 11 estimated to raise at least $100 million. Meanwhile, press reports suggested that SpaceX, OpenAI, and Anthropic were all planning mega-IPOs this year, joined by a chorus of other private company news. SPAC issuance climbed to a four-year high in January, with 25 blank check deals raising $5.2 billion, offering the hundreds of pre-IPO companies an alternative path to public markets.
While many issuers finally appear eager to go public after years of waiting for the right moment, investors have so far signaled that they expect a clear IPO discount, and will continue to be highly selective in awarding premium valuations. Heading into February, a flurry of IPO launches at the end of January has teed up the 2026 IPO market’s next big test.
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