What is an IPO and why does it matter for these stocks?

An IPO (Initial Public Offering) is when a company first sells shares to the public on a stock exchange. This matters because companies in this collection—like exchanges, investment banks, and financial services firms—earn substantial fees from facilitating these offerings. When IPO activity increases, as it has with the NYSE's record $61 billion in capital raising, these companies typically see higher revenue from listing fees, underwriting charges, and increased trading volumes.

What does "underwriting" mean in the IPO process?

Underwriting is the process where investment banks (like Goldman Sachs or Jefferies in this collection) help companies go public by setting the initial price for their shares, purchasing those shares, and then reselling them to investors. The underwriters earn fees for this service, handle regulatory requirements, and help promote the offering to potential investors. When the IPO market is booming, underwriters can earn substantial revenue, making them attractive investments during periods of high IPO activity.

Why are stock exchanges included in this collection?

Stock exchanges like NYSE (owned by ICE) and Nasdaq (NDAQ) directly benefit from IPO booms in multiple ways. They earn initial listing fees when companies go public, ongoing listing fees as companies remain on the exchange, and additional revenue from the increased trading volume that comes with new listings. The record $61 billion raised on the NYSE represents significant fee income, making exchanges key beneficiaries of an active IPO market.

What is the difference between major investment banks and middle-market banks in this collection?

The collection includes both major investment banks (like Goldman Sachs and Citigroup) and middle-market banks (like Stifel and Oppenheimer). The difference is primarily in the size of the deals they handle. Major banks typically underwrite larger IPOs from bigger companies, while middle-market banks focus on smaller offerings. Including both gives investors exposure to the entire IPO ecosystem, as different sized companies choose to go public with different banking partners.

How does a "booming IPO market" affect brokerages and trading platforms?

Companies like Interactive Brokers (IBKR) and Tradeweb (TW) benefit from increased IPO activity because new public offerings tend to drive higher trading volumes and attract new investors to the market. IPOs generate excitement and media coverage, often bringing in first-time investors. The increased market participation leads to more trading activity, account openings, and asset growth for these platforms, creating a positive ripple effect throughout the financial ecosystem.

15 handpicked stocks

Capitalizing on the IPO Boom

A collection of carefully selected stocks that stand to benefit from the surging IPO market. Our professional analysts have identified the financial firms, exchanges, and investment banks that facilitate and profit from this increased capital raising activity.

Han Tan | Market Analyst

Published on July 2

Top Picks from This Group

Here are a few of the assets in this group. Create an account to unlock the full list.

Intercontinental Exchange, Inc.

ICE

Current price

$160.98

As the parent company of the NYSE, Intercontinental Exchange directly benefits from the increased listing fees and trading volumes associated with a b...

As the parent company of the NYSE, Intercontinental Exchange directly benefits from the increased listing fees and trading volumes associated with a booming IPO market.

Goldman Sachs Group, Inc., The

Current price

$779.38

Goldman Sachs is a premier investment bank and a leader in underwriting IPOs, directly benefiting from the surge in capital raising through advisory a...

Goldman Sachs is a premier investment bank and a leader in underwriting IPOs, directly benefiting from the surge in capital raising through advisory and underwriting fees.

Nasdaq OMX Group, Inc.

NDAQ

Current price

$87.34

As a major competitor to the NYSE, Nasdaq also benefits from a robust IPO market, attracting its own share of listings and seeing increased trading ac...

As a major competitor to the NYSE, Nasdaq also benefits from a robust IPO market, attracting its own share of listings and seeing increased trading activity.

Jefferies Financial Group Inc.

JEF

Current price

$63.07

CME Group Inc.

CME

Current price

$265.43

CBOE Holdings, Inc.

CBOE

Current price

$241.49

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12 Month Growth Potential

Use the growth calculator to see how much investing in these assets could return over one year, based on aggregated analyst sentiment provided by Refinitive Ltd.

If you invested across these assets:

≈

In 12 months it might be worth:

$1,000.00

+23.72%

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About This Group of Stocks

Our Expert Thinking

With the NYSE raising a record $61 billion in the first half of 2025, companies that facilitate IPOs are seeing substantial revenue growth. This group targets the financial infrastructure behind this capital formation boom, from exchanges earning listing fees to investment banks collecting underwriting fees.

What You Need to Know

These stocks have a direct link between IPO volume and their fee-based revenue streams. The nearly 40% increase in capital raising activity signals renewed investor confidence and economic strength, creating a favorable environment for these financial facilitators.

Why These Stocks

This collection was handpicked to include the primary beneficiaries of the IPO trend at various market levels. From major exchanges like ICE and NASDAQ to premier underwriters like Goldman Sachs, these companies capture revenue throughout the capital raising process.

Group Performance Snapshot

23.72%

Average 12 Month Profit

On average, analysts expect assets in this group to grow 23.72% over the next year.

9 of 15

Stocks Rated Buy by Analysts

9 of 15 assets in this group are rated Buy by professional analysts.

Source: Analyst sentiment is provided by Refinitiv Ltd, a global leader in financial market data with over 40k business clients. Refinitiv Ltd is an independent third party to Nemo. This is not advice.

Why You'll Want to Watch These Stocks

📈

Record-Breaking Momentum

With NYSE's capital raising up nearly 40% from last year, these companies are riding a powerful wave of increased fee revenue and transaction volume.

💰

Direct Profit Connection

These firms have a straightforward revenue link to IPO activity—more offerings mean more fees, more listings, and more trading, creating a clear path to potential earnings growth.

🔍

Hidden Market Infrastructure

While everyone watches the high-profile IPOs, these companies are quietly collecting fees at every step of the process, regardless of which specific companies go public.

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