The global Initial Public Offering (IPO) market has experienced a significant slowdown in momentum since SpaceX's blockbuster June flotation. Four months on, Wall Street IPOs have slowed considerably, impacting what was anticipated to be a busy quarter for new listings.
Several companies, including smart-ring maker Oura, data centre company SB Energy, petrol station empire EG Group, and nuclear energy firm Holtec, have postponed their planned listings. This trend has cast uncertainty over the market, particularly for tech megacaps Open AI and Anthropic, which were expected to list after SpaceX.
Investment bankers and analysts attribute this shift to lukewarm investor demand and concerns over high valuations in the artificial intelligence sector. Renaissance Capital analysts noted that issuers' price expectations appear too high for the current market conditions. Scepticism has also increased due to 'pop and drop' scenarios, where aggressive sell-offs occur shortly after an IPO, as seen with SpaceX's shares, which surged 19 per cent on its first day but have since declined.
Beyond the US, tech-heavy markets have also been affected. Unitree Robotics, listed in Shanghai, saw its shares surge 460 per cent initially but has since fallen by 46.7 per cent. Companies not directly linked to the AI boom, such as Oura and Holtec, have cited market volatility and unfavourable conditions for their decision to delay listings. This caution follows months of volatile oil prices and rising bond yields.
Economic uncertainty has also led Open AI to push its listing to 2027, while Anthropic is now expected to list in mid-November. The UK market has recorded only seven listings this year, raising £577m in the first half. While African payments firm Airtel Money confirmed a £5.3bn debut for October 14, money managers remain broadly pessimistic, with only 32 per cent expecting increased activity in the next 12 months, down from 63 per cent six months ago.