(Reuters) - WaterBridge Infrastructure's ( WBI ) shares jumped 25% in their debut on the New York Stock Exchange on Wednesday, giving the midstream water management firm a market valuation of nearly $3 billion.

Shares of the Houston, Texas-based company, which is backed by private equity firm Five Point, opened at $25 each, compared with the offer price of $20 apiece.

WaterBridge sold 31.7 million shares to raise $634 million in an upsized initial public offering. It had earlier marketed 27 million shares for $17 to $20 apiece.

U.S. IPO activity is rebounding after a slowdown caused by trade uncertainty as pent-up demand fuels investor appetite for new issues.

Ebullient equity markets and expectations of rate cuts have also given a shot in the arm for the IPO market.