ANALYSIS: IPOs’ Continued Ascent Grounded by Federal Shutdown

An IPO market that in September enjoyed its busiest week since 2021 and was continuing its upward trend has ground to a virtual halt as SEC staff aren’t available to review filings during the federal government shutdown which began Oct. 1.

A prolonged shutdown could have a significant negative impact on companies in the IPO pipeline, and when the government does reopen, the market may experience unusually high volatility owing to a slew of delayed government economic data being released. High volatility is bad for IPOs as it makes pricing an offering much more difficult.

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