Why the government shutdown may be bad news for IPOs

IPO Market Dynamics During Government Shutdown - A dozen companies are on file to go public, with Alliance (laundry equipment) and University of Phoenix (secondary education) being particularly interesting due to their roadshow launches despite the impending shutdown [2][3] - Fermy (energy company backed by Rick Perry) and Neptune managed to go public just before the SEC shutdown [3][4] - Companies may delay IPO plans to Q1 if the shutdown lasts a week or two, as January and February are historically viable months for IPOs [7][8] SEC Operations and Filing Implications - The SEC is accepting company filings (quarterly reports, etc) from already traded companies [9] - The SEC shutdown primarily impacts IPOs and follow-on equity offerings requiring approval for new shares entering the market [10] - A prolonged shutdown could create a logjam, potentially requiring companies to update financials through Q3, seek clearance, and restart roadshows [5] Potential Delays and Market Impact - Companies might postpone IPOs rather than rush and monitor the shutdown's progress daily, potentially shifting activity to the new year [8] - A short shutdown (24-48 hours) is unlikely to significantly alter companies' plans [7]