Fed Rate Cut Gives Green Light to Eager US IPO Candidates

Core Viewpoint - The Federal Reserve's interest rate cut has opened the door for private companies to enter the US initial public offering (IPO) market, with many firms expected to file for IPOs soon [1][2]. Group 1: Market Activity - A variety of companies from different sectors, including technology and services, are anticipated to publicly file for IPOs or begin marketing efforts in the near future following the rate cut [2]. - As of mid-September, 14 companies have raised $7 billion through US IPOs, marking the highest level for the first 18 days of September since 2020 [4]. - If market conditions remain favorable, the number of significant deals in October could exceed those in September [4]. Group 2: Company Readiness - Companies such as Neptune Insurance Holdings Inc. and the owner of the University of Phoenix have already filed with US regulators and are expected to launch their roadshows soon after a mandatory waiting period [3]. - Firms looking to debut in October must file in the coming weeks to avoid delays that could push their IPO plans to 2026 due to the typical holiday season slowdown [5]. Group 3: Market Conditions - The start of a Federal Reserve easing cycle is seen as a potential catalyst for the backlog of companies aiming to go public [5]. - The Fed's decision is expected to enhance visibility in market pricing, thereby increasing demand for IPOs in the upcoming weeks [6].