IPO Hopefuls Cater to Retail Crowd Driving Supersized Offerings

Retail traders, long considered dumb money by Wall Street, have changed investment dynamics in everything from individual stocks to crypto to one-day options. Now they’re throwing their weight around in the IPO market — and companies are welcoming them with open arms.

Take Bullish, the crypto firm that went public last month in a supersized $1.1 billion debut. The company gave retail investors direct access to the initial public offering — a privilege usually reserved for early investors, institutions or wealthy customers of the Street’s biggest banks — via online brokerages like SoFi and Robinhood. And demand was ...