(Bloomberg) -- The US initial public offerings market capped its biggest month since September, with a widening scope of deals inspiring measured optimism that the recovery has momentum.

A range of companies led by cruise operator Viking Holdings Ltd. raised some $5.7 billion in the month, the most since the second half of last year’s burst of activity proved to be a head-fake, data compiled by Bloomberg show. While the activity pales in comparison to a typical pre-pandemic year, the amount raised so far this year is up more than three-times from the same period in 2023.

The average share price rise of 19% for April’s debutants raising more than $100 million has also reinvigorated investors, coming amid the worst month since September for the benchmark S&P 500. These green shoots have inspired some cautious confidence from bankers who are expecting the recent flow of deals to continue in the run-up to November’s election.

Viking’s $1.54 billion IPO pricing Tuesday ended April with a bang. The listing was the second largest on a US exchange this year behind Amer Sports Inc., and could surpass it if an over-allotment option is exercised, according to data compiled by Bloomberg. Viking’s shares climbed as much as 12% in their debut, while plane parts maker Loar Holdings Inc. and Ibotta Inc. are each up more than 15% from their IPO prices.

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“The fact that these IPOs were so well received, priced so well and are trading up in the after-market while the rest of the market is stumbling stands out,” said  Josh Weismer, head of US equity capital markets at Mizuho Financial Group Inc. “The market is in a very different spot than in the fall from a risk perspective.”

The IPO market is slowly warming back up after being mostly dormant since the end of 2021 when equities globally cratered amid geopolitical uncertainty and stresses about interest rate expectations. Wall Street has generally offered up deals since then at valuations investors have embraced, delivering strong debuts. The follow-through with trading in the weeks after has helped draw in more companies to make the leap.

Still, bankers have been cautious about predicting when a normal IPO environment may return, which leaves many companies struggling for access to capital. The timing and pace of interest rate cuts could add fuel to the IPO cycle, though the Federal Reserve remains content for now to lean into its “higher for longer” view.

Tightening budgets and focusing on profits and the ability to extend cash runways has been top of mind for private firms, according to Insight Partners managing director Ryan Hinkle.

“By and large, founders across our world have recalibrated to either make the cash last longer or last outright,” Hinkle said in an interview. “The companies that go public this year will need a strategic reason to go public not just as another financing event. If you don’t need the financing you shouldn’t do it until there’s more activity.”

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Private equity firms and venture capitalists are waiting for US interest rates to come down and need a more robust reopening of the IPO window to continue the cycle of investing that they lean on.

“The key question on everyone’s mind is when IPO activity will normalize,” said Natalie Hwang, founding managing partner of Apeira Capital. “A sustained reopening will help to re-accelerate momentum within the private markets.”

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