Stock Market Instability Leads to Shelved IPOs 

Initial public offerings (IPOs) are being put on hold as an unstable stock market leads to wariness among investors, according to a Tuesday (Oct. 5) report from Bloomberg. 

An over-saturation of deals is another factor in at least eight European companies pulling back their IPOs.  

Citing rising COVID-19 cases in the wake of the continued spread of the Delta variant, Forbes last month forecast stock market volatility heading into fall. Increases in investments from fall 2020 through the first quarter of 2021 was fueled in large part by a combination of optimism focused on virus vaccines and the availability of stimulus money.

Some companies listing their IPOs are doing so at hefty decreases in valuation, according to PYMNTS. KakaoBank Corp. in July had announced it would raise $2.2 billion after pricing its IPO at the top of the marketed range. However, by the end of August, the company had announced it would reduce its valuation. 

See also: Kakao Pay Updates IPO Prospectus With Reduced Valuation  

Still, even as some companies scale back or shelve their IPOs, others are opting to move forward seemingly unscathed. This week, accounts payable company AvidXchange Inc. submitted its regulatory filing and announced its plans to go public with an IPO of $506 million. 

Read more: AP Firm AvidXchange Looks at $506M IPO 

A flurry of IPOs have been filed by retail companies recently. Since the start of the pandemic in 2020, approximately 30 major retailers filed for bankruptcy, PYMNTS reported. Of those, at least 12 companies have filed IPOs, including eight filings since July. Most recently, kid and tween jewelry and accessory retailer Claire’s filed an IPO with the U.S. Securities and Exchange Commission less than three years after emerging from bankruptcy. 

Last month, both Mattress Firm, which emerged from Chapter 11 protection in November 2018 and Guitar Center, which exited bankruptcy in December, filed registration papers with the SEC — potentially signaling that the businesses have recovered in recent months. 

Related reading: Take Two: Formerly Troubled Retailers Seek Fresh Start With IPOs