U.S. securities and derivatives broker Clear Street announced on Wednesday its intention to pursue a valuation of up to approximately $11.8 billion in its upcoming initial public offering (IPO), signaling a broad acceleration in the U.S. IPO market as investor sentiment rebounds. Driven by U.S. stock markets repeatedly hitting record highs and a concentrated release of pent-up demand for new listings, IPO activity in early 2026 has noticeably intensified. This week is set to see eight companies debut in New York, with each expected to raise no less than $100 million. Renaissance Capital, an IPO research firm and related ETF provider, noted this would mark the busiest week for larger IPOs since 2021. Previously, the historic U.S. government shutdown last year disrupted deal processes, causing a temporary slowdown in the issuance pace.

According to its offering plan, Clear Street intends to issue 23.8 million shares, with a price range set between $40 and $44 per share, potentially raising up to $1.05 billion at the high end. Founded in 2018 and headquartered in New York, the company initially positioned itself as a prime brokerage platform but has significantly expanded its operations in recent years, now venturing into areas such as investment banking and equity research.

Notably, a fund managed by BlackRock has expressed interest in subscribing for up to $200 million worth of Clear Street stock, providing significant institutional backing for the offering. Industry insiders point out that prime brokerage plays a critical role as part of the financial market's "infrastructure," providing services like risk management, portfolio monitoring, financing, and securities lending to hedge funds.

Last year, the multi-billion dollar prime brokerage business on Wall Street experienced a boom, fueled by strong returns from multi-strategy mega hedge funds navigating volatile markets, which in turn drove up demand for these services. Rising company valuations and an increase in the number of new hedge funds have further propelled the expansion of this business segment.

Clear Street's IPO plans follow a period of substantial financial growth for the company. It projects net revenue for 2025 to reach between $1.04 billion and $1.06 billion, a significant increase from the $463.6 million reported the previous year. Clear Street will list on the Nasdaq under the ticker symbol "CLRS." Goldman Sachs, BofA Securities, Morgan Stanley, UBS Investment Bank, and Clear Street itself are acting as lead underwriters for the IPO.