New IPOs Could Make Waves After Circle, CoreWeave Success

The market is getting excited about initial public offerings (IPOs) again.

Design company Figma's revenue continues to grow rapidly. I Photo: Figma Facebook

Following the strong debuts of stablecoin issuer Circle and cloud-rental company CoreWeave, attention is turning to a new batch of tech firms that could soon go public, Adam Clark reported for Barron’s Daily.

One high-profile contender is design software company Figma, which filed a proposed IPO with the Securities and Exchange Commission (SEC) recently.

Figma was nearly sold to Adobe in 2023 for $20 billion, but the deal fell apart due to regulatory opposition from the UK. While the company's luster has dimmed somewhat since then, revenue continues to grow rapidly.

Another IPO candidate is chipmaker Cerebras, which recently filed its paperwork.

The company posted revenue of $136.4 million in the first half of 2024—more than 15 times the amount from a year earlier. However, Cerebras appears heavily reliant on Abu Dhabi-based AI firm G42, which accounted for nearly 90% of its sales during that period.

Meanwhile, Databricks, a data-storage and analytics firm, is a more speculative option.

While it has not officially filed for an IPO, rumors are intensifying after a $10 billion funding round late last year that valued the company at $62 billion.

Investors should proceed with caution.

Newly listed stocks often decline after their post-IPO lockup periods expire—typically six months after listing—when insiders and early investors are allowed to sell. Still, the potential of these companies is capturing market attention.