Many IPOs targeted for the end of this year will likely be pushed into next year as the Securities and Exchange Commission works to clear a backlog of hundreds of registration statements.
A strong year for initial public offerings on Wall Street has fizzled out due to the government shutdown and a cautious turn by investors.
Many IPOs targeted for the end of this year will likely be pushed into next year as the Securities and Exchange Commission works to clear a backlog of hundreds of registration statements. Meanwhile, shares of companies that did make their market debuts haven’t fared well lately amid concerns that stocks have gotten too expensive after another double-digit gain for the market this year.
“A backlogged SEC, the approaching holiday slowdown, and pressure on AI and other tech stocks are all weighing on hopes for a near-term rebound,” wrote Bill Smith, CEO of Renaissance Capital, in a note to investors.
Despite the backlog, Wall Street is still anticipating several IPOs in November and December that were already in the later stages of the regulatory process.
Central Bancompany was one of the bigger companies going public following the end of the government shutdown. The bank holding company for The Central Trust Bank raised $373 million from its IPO on Thursday. Still, November is on track to be among the slowest months for IPOs in 2025, according to Renaissance Capital.
Wall Street anticipates that medical supplies company Medline could go public in December, potentially raising up to $5 billion, while cryptocurrency technology company BitGo remains another potential IPO for next month.
