Global IPO market slows down sharply
Four months after SpaceX’s $75 billion IPO, the global market for new listings has significantly slowed. The momentum has come crashing back down to earth following Elon Musk’s listing.
Recent Postponements and Market Concerns
Several companies have recently delayed their listings, including smart-ring manufacturer Oura, data center firm SB Energy, fuel retailer EG Group, and nuclear energy company Holtec. These postponements have raised concerns, particularly for major tech firms like Open AI and Anthropic, which were expected to follow suit.
Investment experts attribute this shift to weak investor interest and worries about inflated valuations in the artificial intelligence sector. Renaissance Capital analysts noted that after a strong second quarter, “issuers prepped deals with price expectations that look too high for today’s choppier market.” The AI sector’s downturn has intensified, with investors questioning valuations and data center projects facing scrutiny.
SB Energy, backed by SoftBank, faced criticism for its $50 billion valuation target despite not having any operational facilities. This skepticism has been fueled by instances of ‘pop and drop,’ where heavily oversubscribed IPOs experience rapid sell-offs shortly after listing. SpaceX’s shares, for example, rose 19% on their first day but have since declined, trading around $158.9.
Renaissance Capital suggests that while companies may cite adverse market conditions for delays, the reality may be a return to more typical market behavior. Non-AI companies have also postponed listings due to market volatility. Oura attributed its decision to “IPO market uncertainty,” while Holtec withdrew its filing last month, citing unfavorable conditions.
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Broader Economic Factors
The cautious approach follows a period of volatile oil prices due to Middle East conflicts and rising bond yields. Economic uncertainty has also impacted Open AI and Anthropic, both of which have delayed their filings. Anthropic is now expected to list in mid-November, while Open AI has pushed its plans to 2027.
The IPO slowdown is most pronounced in the US but has affected other markets. The UK has recorded just seven listings this year, raising £577m in the first half, according to EY. Uzbekistan’s Uznif has been notable, listing a 30% stake in May.
Kat Kravtsov, Pwc UK’s capital markets director, observes that companies are carefully timing their launches amid fiscal and monetary policy uncertainties. While a limited number of listings are expected before the end of 2026, much of the visible pipeline is focused on early 2027. Investors continue to balance long-term optimism with ongoing fiscal, monetary and geopolitical risks.
London received a boost when African payments firm Airtel Money confirmed its £5.3bn debut for October 14. Money managers remain broadly pessimistic, as just 32% expect activity to pick up in the next 12 months, according to Berenberg’s latest Investor Barometer. This is down from 63% six months ago.
European markets are also affected, with Ennismore, a boutique hotel company partnered with Accor, reportedly reconsidering their IPO plans. By City AM
