Some technology corporations are postponing or withdrawing their initial public offering (IPO) plans. Investors who had anticipated an IPO boom following the Donald Trump administration's launch are unable to hide their disappointment. As market volatility and policy uncertainty increase, corporations are maintaining a cautious attitude.
The automobile-sharing platform Turo, known as the Airbnb of the automotive industry, officially announced its decision to withdraw its IPO through documents submitted to the U.S. Securities and Exchange Commission (SEC) on the 13th (local time). Andre Haddad, CEO of Turo, stated in a press release that "now is not the right time," explaining the reasons for the withdrawal. Turo has been pursuing an IPO since 2021, but this decision is interpreted as a reversal based on the market environment.
Not only Turo, but other technology corporations are also hesitating to pursue IPOs. Cerebras, an artificial intelligence (AI) chip corporation that submitted an investment prospectus last fall, has also postponed its listing plans. The New York Times (NYT) reported, "Although this year's IPO market momentum is stronger than last year, the expected large-scale listing boom is not occurring."
According to Renaissance Capital, a fund management firm specializing in IPOs, corporations raised a total of $6.6 billion through listings this year, a 14% increase compared to the same period last year. However, the movements of large corporations that have been waiting for a long time to go public are still sluggish.
◇Market uncertainty expands, freezing the market
One of the main reasons corporations are delaying their listings is extreme volatility and uncertainty. The announcement of tariffs by the Trump administration and rapid regulatory changes have dampened investor sentiment. NYT analyzed that "the initial election of Trump ended an uncertain campaign and signaled the beginning of a business-friendly and anti-regulatory era, causing the stock market to surge with expectations of increased transactions," but "recent government tariff policies and regulatory changes have instead led to uncertainty and volatility."
Inflation (persistent price increases) and global economic instability are also factors at play. In particular, the emergence of the Chinese AI application "DeepSeek" last month has shaken confidence in U.S. tech stocks. As investor expectations for the AI industry diminish, related stocks have all experienced declines, affecting the IPO market as well. Phil Haslett, co-founder of the unlisted stock trading platform "EquityZen," noted that "the previously packed IPO schedule has become completely vacant in just three weeks." Experts believe that macroeconomic concerns such as inflation, interest rates, and geopolitical risks may impact other corporations' IPO plans.
◇Startups opting for private investment instead of IPOs
Some startups are choosing to raise funds in the private market instead of pursuing an IPO. Goldman Sachs CEO David Solomon said, "One reason startups are delaying their IPOs is that they can secure sufficient funds in the private investment market," and added that "Corporations that in the past had no choice but to list can now secure enough funds in the private market." Goldman Sachs helped Stripe, which was valued at $70 billion last year, raise billions of dollars. Stripe is securing liquidity by selling a certain equity portion to existing shareholders and employees, even without going public.
The IPO market has not completely frozen. On the 15th, cybersecurity corporation SailPoint Technologies successfully went public, raising $1.38 billion. However, its stock price fell 4% compared to the offering price ($23), falling short of expectations. Experts believe that the IPO market may gradually recover from the second half of the year. However, if market volatility continues, corporations' "timing weighing" is expected to persist for the time being.