NEW YORK (AP) — The U.S. government shutdown is a sign of caution for private companies rushing to move into the public market.
The initial public offering market has been recovering for years after rising inflation slowed activity in 2022. The IPO market is already on track for its best year since 2021 with 163 deals and $31 billion in proceeds raised so far, according to Renaissance Capital.
Companies rely on the U.S. government, through the Securities and Exchange Commission, to review and approve IPO filings, while monitoring the ongoing process. The SEC is now operating with a skeleton staff, significantly delaying or halting those reviews and approvals.
Investors and companies face more than just technical issues. A prolonged government shutdown could undermine confidence in U.S. markets and the economy. IPO activity generally remains strong through October, then slows in the United States during the last two months of the year.
“That’s always a year-end factor,” said Samuel Kerr, head of global equity capital markets at Mergermarket.
Investors and businesses had been ignoring much of the uncertainty that plagued the U.S. government and economy throughout the year, including unpredictable trade policy, ongoing concerns about inflation, a weakened labor market and questions about Federal Reserve policy. Amid all that, the stock market has made record after record and new companies continue to join its ranks.
However, the stalemate in Washington has brought a reminder of the challenges facing the market.
“(The closure) reminds them that we are not operating in normal times,” Kerr said.
Investors have been attracted to IPOs because stocks have looked expensive for a while, especially in the technology sector, forcing them to look for other ways to enter the market. IPOs have offered a way to do this. Many of the biggest IPOs of 2025 have come in growing technology fields, including cryptocurrency technology and artificial intelligence.
Circle Internet Group, the US-based issuer of one of the most popular cryptocurrencies, made its public debut in June for around $1.1 billion.
Circle issues USDC, a stablecoin that can be traded at a 1:1 ratio for US dollars, and EURC, which can similarly be traded for euros. Its shares are priced at $31, soared on the first day of trading and are currently trading at around $152.
Cryptocurrency exchange Bullish raised around $1.1 billion in August. Cloud computing company CoreWeave raised about $1.5 billion when it went public in March.
Klarna, the Swedish buy now, pay later company, entered the public market in September, raising $1.37 billion. That made it the largest initial public offering of the year, according to Renaissance Capital. The IPO was priced at $40 and shares are currently trading around $42.