Reference News Network, December 1 report: According to the Associated Press on November 22, due to the U.S. government shutdown and investors turning cautious, the strong initial public offering (IPO) activity on Wall Street this year has gradually cooled down.

Due to the U.S. Securities and Exchange Commission (SEC) dealing with hundreds of backlogged IPO application documents, many IPOs originally scheduled for the end of this year may be postponed to next year.

At the same time, the stock prices of some successful listed companies have recently performed poorly, as people are worried that the prices have become overvalued in a year when the stock market has again seen double-digit gains.

In a report to investors, Bill Smith, CEO of Russia's Renaissance Capital Bank, wrote: "The backlog of work at the SEC, the slowdown caused by upcoming holidays, and the pressure on artificial intelligence and other tech stocks are all suppressing hopes for a near-term (IPO) rebound."

Despite the backlog of application documents, Wall Street expects several companies that are in the later stages of the approval process to go public in November and December.

American Central Bank Company was one of the large companies that went public after the government shutdown ended. On the 20th, the company raised $373 million through an IPO. However, Renaissance Capital Bank said that November will still be one of the months with the fewest IPOs in the United States in 2025.

Wall Street expects medical supply company Medline to go public in December, potentially raising up to $5 billion, while cryptocurrency technology company BitGo may also go public in December.

The more cautious attitude of the market has also suppressed the recent price increases of some IPO companies, with some stocks having fallen significantly since their listing.

When the web design software company Figma went public in July, its share price was set at $33 per share, rising more than twice on the first day of trading, but its current stock price is only slightly above the IPO price.

Swedish company Klarna had an IPO price of $40 per share in September, and its current stock price is close to $29. In March, the cloud computing company "Core Weave" also set its IPO price at $40 per share. After going public, the company's stock price surged in the following months but then fell sharply, dropping to around $72 per share.

The software company Naven went public during the government shutdown at a price of $25 per share, but its current stock price is approximately $15.

The S&P 500 Index, the benchmark for the stock market, had a weak performance in November. So far this month, the index has fallen 3.5%, with most of the decline coming from the tech sector, which had previously been driven higher by enthusiasm for artificial intelligence, and Wall Street is increasingly concerned about whether these stock price increases are justified.

The S&P 500 Index has still risen more than 12% this year, while the Nasdaq Index, which is dominated by tech stocks, has risen more than 15%.

As of the 21st, the IPO index compiled by Renaissance Capital Bank has fallen nearly 0.8% this year.

In the new year, the pricing and types of corporate IPOs will depend on the overall market trend. Some larger technology companies that are more anticipated may go public in 2026, including "Data Brick," a company focused on artificial intelligence, and Canva, a flat design application company. (Translation / Hu Xue)

Original article: toutiao.com/article/7578822145631978034/

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