A Morgan Stanley banker predicts that there will be 10 to 15 more tech IPOs in 2024 and anticipates a "better year" in 2025.

• Morgan Stanley anticipates 10 to 15 more tech IPOs this year and predicts a "better year" in 2025.
• Colin Stewart, the head of the bank's tech equity capital markets practice, stated on CNBC that valuations have returned to their 2018 and 2019 levels.
• Stewart stated that in the past six to 12 months, the market has become more accustomed to investing in growth.

The IPO market has returned after a prolonged period of inactivity.

According to Colin Stewart, global head of technology equity capital markets, 10 to 15 more tech companies could go public before the end of 2024, with an even "better year" in store for 2025, as he stated in an interview with CNBC's "TechCheck" on Monday.

Stewart stated that it has been two and a half years since they had nothing, but recent IPOs have priced high and traded well, indicating a positive future.

In 2022, a lull occurred in the tech industry due to high inflation and interest rates, which caused investors to retreat from risky investments. This led to a decline in tech valuations and delayed public plans for many companies. In contrast, the previous two years witnessed a surge in deals, some at unprecedented revenue multiples.

In September, the IPO market opened with the debuts of and . However, the first real signs of momentum emerged last month with the IPO of a major social media company, and the data center connectivity chip company, soared on its first day of trading.

Astera's stock has increased by approximately 145% since its IPO, while the other stock also remains above its initial price, as investors continue to invest in companies related to artificial intelligence.

Morgan Stanley served as the primary banker for both the Reddit and Astera IPOs, earning approximately $37 million in fees.

Last week, a rival Wall Street bank led the latest venture-backed tech IPO, with the company that develops data management software experiencing a 16% increase in its New York Stock Exchange debut.

Stewart, who has played a role in several of the largest IPOs in recent years, stated that it typically takes six months to bring an IPO to completion. As a result, companies considering an IPO may choose to delay their plans until next year to avoid coinciding with the U.S. presidential election in November, according to him.

According to Stewart, the market has retreated from the peak days of 2021, and multiples in software and other parts of technology are now back to levels seen in 2018 and 2019. Stewart described 2021 as an "amazing year" but also "exhausting."

"Stewart stated that in the past six to 12 months, the market has become more comfortable with paying for growth again. While we are not yet back to the levels of 2021, we are starting to see companies receive a fair price for growth. At these prices, companies are beginning to view being public as not so bad."

The most valuable late-stage companies have not yet been sold, and this list includes SpaceX, Stripe, and Databricks.

Stewart acknowledged that the challenge for bigger names is their scale, growth, and investors' capital investment towards the future, despite his statement that he'd "love to take them public."

"Unfortunately, he said, the IPO is not on their near-term horizon, but when it does come, it will be a blockbuster."

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