US Government Shutdown Threat Kicks IPO Market While It’s Down
- SEC would be unable to vet filings, declare pricings effective
- First-time share sale volume down 92% from 2021’s banner year
The US Capitol in Washington, DC.
Photographer: Graeme Sloan/BloombergA potential US government shutdown Saturday threatens to deal another blow to the already tepid market for initial public offerings.
As the House prepares to vote on a temporary funding plan Tuesday, Wall Street is bracing for a scenario that would effectively close the market to IPO candidates, as the Securities and Exchange Commission would operate with just a skeletal staff. That threat is just the latest issue to plague a market that’s been moribund for nearly two years, with the cash raised via IPOs on US exchanges through November sitting at levels similar to 2022 — the lowest in more than a decade.