In the face of a potential US government shutdown, firms are expediting their plans to go public, leading to a surge of IPO filings this week. Amidst market volatility, healthcare payments software firm Waystar Holding Corp. and Hamilton Insurance Group Ltd. have filed for IPOs, despite the lackluster performance of notable US IPOs this year.
The filing process necessitates a 15-day waiting period before issuers can commence sales, prompting companies to file this week to avoid any potential shutdown repercussions. However, Richard Truesdell Jr., a partner at Davis Polk & Wardwell, expressed apprehension over issuers' readiness to file publicly amid the ongoing uncertainty.
The market instability has been exacerbated by Rep. Jim Jordan's bid for Speaker of the House following Kevin McCarthy's ouster, as well as the threat of a government shutdown by November 17. Such a shutdown could reduce the US Securities and Exchange Commission to minimal staff, disrupting new listings and pressuring companies to either accelerate their public offering plans or delay them.
The US IPO market has remained largely stagnant for nearly two years, with major deals like Arm Holdings (NASDAQ:ARM) Plc, Instacart (NASDAQ:CART) ( Maplebear Inc.), Klaviyo (NYSE:KVYO) Inc., and Birkenstock Holding Plc falling short of expectations. Matthew Witheiler from Wellington Management highlighted the shutdown's potential ramifications on December IPOs, full-year financials, and the S&P 500 Index.
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