Market volatility, high interest rates, and ongoing geopolitical conflict continue to influence low levels of IPO activity in the U.S. capital markets. The trend is observed across all sectors, resulting in IPO levels similar to those seen during and in the aftermath of the 2009 financial crisis. While the third quarter of 2023 saw a boost with a handful of high-profile technology companies completing their IPOs, it did not usher in a wave of other transactions. Many companies continue to opt for a “wait-and-see” approach.
While there continues to be markedly lower IPO activity, we publish this report in the interest of continuity. Given the very small sample size, we caution readers not to draw conclusions about whether the data in this report will be reflective in a more typical market environment.
Some companies who have previously shelved their IPO plans may now be considering starting them up again and we have observed an uptick in other companies considering initiating processes. While there is no doubt that the state of the IPO market over the coming months will be determined primarily by macroeconomic factors, the 2024 U.S. election, and the stock performance of growth companies, several additional considerations will also play an important part in a company’s decision of whether to move forward with IPO plans and their ultimate success. The report provides practical advice and considerations for late-stage companies and what they can do now once market conditions become more favorable.
