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
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...