IPOs get stuck in government shutdown limbo as SEC goes quiet

Core Insights - The recent federal government shutdown has significantly impacted the IPO market, halting the review and processing of new registration statements by the SEC [2][5] - High-profile companies like Beta Technologies and Once Upon a Farm are now unable to proceed with their IPOs, creating a backlog in the market [3][4] - Historical data suggests that prolonged shutdowns can severely disrupt IPO activity, as seen during the 2018-2019 shutdown, which led to a near halt in traditional IPOs [5][6] Impact on IPO Activity - The current shutdown has left companies with outdated financial statements, as they must update their filings if they miss the October or November windows, leading to costly delays [4] - The longer the shutdown lasts, the more likely it is to affect investor sentiment and valuation of deals once the market reopens, as external factors may influence the landscape [7] - Past experiences indicate that while shutdowns do not eliminate the IPO market, they freeze activity and create a crowded calendar upon reopening, which can complicate the fundraising process for companies [7]