Etro Rises on Nasdaq Debut Amid IPO Market Hopes
Yoni Assia, co-founder and CEO of Etro Group Ltd., along with his colleague Ronen Assia, will ring the opening bell on May 15, 2025, marking the company’s initial public offering at Nasdaq Marketsite in New York.
The IPO market has frequently misled investors, convincing them that the slowdown from early 2022 would continue. Yet, signs of optimism are emerging.
Shares of the brokerage platform Etro surged nearly 29% on its first day at Nasdaq, exceeding initial price expectations. On the same day, CoreWeave, an AI infrastructure provider and from Israel, reported a staggering 420% revenue growth—the company’s first earnings report since going public.
However, CoreWeave’s stock has taken a hit, plummeting about 60% in value this week, even though its market value has doubled since its IPO in March.
The dynamics have shifted considerably over the past month. Early in Donald Trump’s second term, there was a positive outlook from bankers and venture capitalists regarding a revived IPO market. But after his controversial tariff policies were introduced, they caused substantial market instability in April, leading companies like online lender Klarna and ticketing platform Stubhub to postpone their anticipated IPOs.
According to data from the National Venture Capital Association and Pitchbook, the first quarter saw the highest number of exits for venture-backed companies since late 2021, with nearly 40% attributed to CoreWeave’s IPO.
“We expected a resurgence in IPO activities as the year progressed, but that optimism has dimmed due to the tariffs,” the NVCA and Pitchbook noted in their Mid-April report. “As investors seek safer options, many VC-backed firms might struggle to create sufficient demand to justify high market valuations.”
Looking ahead, the second quarter could see an uptick in activities.
There’s no recent news from Klarna or Stubhub, and both companies opted not to comment on the current situation. But Etro’s successful debut may inspire other companies that have been holding back.
Upcoming Developments
Chime, a fintech company, submitted its prospectus on Tuesday, and is now set to go public on Nasdaq, having previously delayed its plans due to the tariff announcements. Meanwhile, Omada Health, which launched last week, has also made submissions.
“There’s a sense that the market will make a comeback,” Rachel Gering, American IPO leader at Ernst & Young, shared with CNBC. “The issue at hand is timing—it’s not necessarily all bad.” She added that a glimmer of optimism seems to be returning, partly due to a temporary suspension of the stricter trade policies and a significant reduction in tariffs from China during that period.
However, there’s still plenty of uncertainty. Gering pointed out that it’s challenging for businesses to navigate these waters, especially as they prepare to enter the market. She encourages clients to focus on their readiness so they’re positioned when opportunities arise.
Next week, the spotlight will be on Hinge Health, a digital health startup focusing on virtual physiotherapy, which recently filed a prospectus with an anticipated pricing range of $28 to $32, valuing the company at around $2.4 billion at the mid-range. It’s worth noting that the digital health sector has faced significant hurdles post-COVID, with many firms struggling to maintain growth.
Turning to the AI sector, chipmaker Cerebras had some updates this week. After its initial offer was delayed by regulatory reviews, CEO Andrew Feldman expressed his hopes to officially launch the company this year, contingent on obtaining the needed approvals.
Galaxy Digital, a digital asset company, recently transitioned its trading to Nasdaq from the Toronto Stock Exchange, a move made possible by overcoming regulatory skepticism in the U.S. CEO Mike Novogratz believes this change will broaden their investor base.
Nonetheless, Gering remarked that for true recovery in the IPO market, larger, growth-focused companies will need to make a return. “The IPO market may be one of the last segments to rebound as the overall market stabilizes given the risks involved,” she commented. “But we’re definitely moving in a positive direction.”
