As we approach the midpoint of 2024, it’s clear that the initial public offering (IPO) market has not roared back to life as many investors had hoped. Elevated interest rates and uncertainty surrounding the U.S. election have led many companies to stay private, waiting for more favorable market conditions.
A Handful of Companies Take the Leap
Despite this caution, a small group of companies did take the plunge and go public this spring. One such company is Ibotta, an enterprise rewards platform that provides back-end infrastructure for clients like Walmart and Exxon. On April 18th, Ibotta debuted on the New York Stock Exchange (NYSE) at $117 a share, trading above its initial price range of $88.
CEO Bryan Leach Weighs In
In an interview with TechCrunch, Ibotta’s CEO, Bryan Leach, shared his thoughts on going public in 2024. Leach acknowledged that some might consider the company’s decision to go public this year a mistake, given the fact that its stock has dropped nearly 50% since its IPO. However, he remains optimistic, citing the example of Instacart’s stock trading close to its debut price just one year after going public.
The Benefits of Being Public
Leach highlighted several advantages of being a public company, including:
- Legitimacy: Having an air of legitimacy that comes with being public can be beneficial when trying to secure large enterprise clients.
- Leverage: As a public company, Ibotta has access to capital and resources that would not have been available as a private entity.
- Hiring: Leach noted that the company’s decision to go public has made it more attractive to top talent, who are drawn to the idea of working for a publicly traded company.
Timing is Everything
Leach emphasized that companies should focus on being prepared and ready to go public when they make the decision to do so. Trying to time the market can be a recipe for disaster, as Leach noted, "You can’t control the market, but you can control your own readiness."
The Future of the IPO Market
As interest rates continue to trend downward, and rumors of companies hiring bankers to start the IPO process begin to circulate, it’s clear that the IPO market is on the cusp of a resurgence. Whether 2025 will be the year that the market truly opens up remains to be seen, but one thing is certain – companies like Ibotta are paving the way for a new era of public offerings.
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About the Author
Rebecca Szkutak is a senior writer at TechCrunch, covering venture capital trends and startups. She previously covered the same beat for Forbes and the Venture Capital Journal.
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