The government shutdown in the US risks disrupting the long-awaited revival of the initial public offering (IPO) market. On Wednesday, a large portion of federal operations were halted due to a budget dispute between Congress and the White House.
During this period, the Securities and Exchange Commission (SEC), which is only performing essential functions, will not be processing IPO applications.
This has thrown companies like Jennifer Garner’s baby food company Once Upon a Farm and electric aircraft manufacturer Beta Technologies, which are awaiting their IPOs, into uncertainty. 2025 had started promisingly for IPOs with strong investor demand and successful initial public offerings. Since the beginning of the year, $52.9 billion has been raised in 263 IPOs, the highest level since 2021. However, if the shutdown period is extended, the momentum in the IPO market could quickly disappear. Analysts warn that “a shutdown lasting longer than a week would paralyze the IPO market.” Nevertheless, strong fund inflows and high investor interest suggest that the market could recover quickly after the shutdown.
