Damage of US shutdown on IPO market will extend into 2019

Author: John Crabb | Published: 17 Jan 2019

The government shutdown currently preventing the US Securities and Exchange Commission (SEC) from fulfilling more than its bare minimum emergency function is likely to negatively impact companies looking to conduct initial public offerings (IPOs) long after business restarts.

IPO registrations are on hold while the Commission is officially closed, meaning that firms in the process of filling or due to be in January are unable to proceed. Those who had planned to in the coming months will also likely face a delay as staff catch up with the extensive backlog.

"The US public equity markets are the envy of the world. Any limit on their operation harms the US economy. Consequently, we hope a resolution will emerge soon," a Nasdaq spokesperson told IFLR.

A regular IPO timeline is generally anywhere between three to nine months. This means that for any company that is yet to start that process in the...