Government Shutdown Puts IPO Resurgence at Risk
The IPO market has been sizzling in recent months, but the government shutdown threatens to put a short-term halt to public offerings. Here's why.


The market for initial public offerings (IPOs) has been red-hot in recent months, bouncing back after a spring freeze sparked by uncertainty about President Donald Trump's tariff policies.
In the third quarter, there were 64 IPOs that raised a combined $15.3 billion. According to Renaissance Capital, this marked the biggest quarter for new offerings since 2021.
"IPOs delayed by earlier macro headwinds were revived or even accelerated to take advantage of surging demand for new issues, resulting in a steady pickup through July, a more-active-than-usual August and more robust deal flow in September," wrote Renaissance Capital in its third-quarter (Q3) review (PDF).
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.

Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Some of the more notable offerings we've seen this year include Peter Thiel-backed crypto company Bullish (BLSH) and design software firm Figma (FIG), which both raised more than $1 billion in their offerings. (Each stock has since fizzled since their impressive market debuts, though.)
October started off strong, too. Fermi (FRMI), a Texas-based company with big plans to build data centers, raised $683 million in its September 30 upsized offering, and shares surged 55% in their October 1 market debut.
Momentum could come to a grinding halt if the government shutdown, which began at 12:01 am Eastern Time on Wednesday, October 1, doesn't come to a quick resolution.
Why would the government shutdown impact the IPO market?
Companies seeking to go public must file paperwork with the Securities and Exchange Commission (SEC).
"The S-1 (PDF) includes the prospectus, with key details of how the company will operate, such as the business plan, risk factors, audited financials, management team bios, compensation and so on," writes Kiplinger contributor Tom Taulli in his explainer, "What Is an Initial Public Offering (IPO)?"
The SEC then reviews the S-1 and "may request that certain changes be made. These changes will become part of an amended S-1, which will also be published on EDGAR. There will often be several of these filings."
But the SEC is only running essential functions during the government shutdown, with a low staff. While EDGAR will remain operational, allowing companies to make filings as they normally would, "staff reviewing the filings will be furloughed, and any function that requires review from a member of the staff will not occur," said the SEC in its government shutdown guidance.
The agency added that those firms "with pending comments from the SEC staff on their filings may respond to those comments, but SEC staff will not reply until normal operations resume."
While a lengthy shutdown certainly creates a speed bump for an IPO market that has been barreling full steam ahead in recent months, it's likely to be a temporary one.
"With a solid quarter of activity behind us and more deals lining up in the pipeline, the long-awaited IPO pickup appears to be well underway, and solid returns, stable market conditions, and a robust private backlog bolster a strong outlook for the rest of the year, provided that the government shutdown is resolved quickly," says Renaissance Capital.
Related content
- Hot Upcoming IPOs to Watch
- What Happens to Your Money in a Government Shutdown?
- Government Shutdown to Delay Data, Including Key Jobs Report
- How Medicare Is Affected by a Government Shutdown
- What Happens to National Parks During a Government Shutdown?
- Government Shutdown Could Delay 2026 Social Security COLA Announcement
- What Will the 2025 Government Shutdown Do to the IRS?
Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

With over a decade of experience writing about the stock market, Karee Venema is the senior investing editor at Kiplinger.com. She joined the publication in April 2021 after 10 years of working as an investing writer and columnist at a local investment research firm. In her previous role, Karee focused primarily on options trading, as well as technical, fundamental and sentiment analysis.
-
What's in the 2025 Trump Tax Bill? New Deductions, Tax Cuts, and Major Benefits Changes to Know
Tax Law Understanding which 'big, beautiful bill' tax changes apply can help you navigate new rules now and plan finances and tax filings for years to come.
-
Ready to File? Test Your Social Security Application IQ
Quiz Test your basic knowledge of filing for Social Security benefits in our 10 question quick quiz.
-
Should Your Brokerage Firm Be Your Bookie? A Financial Professional Weighs In
Some brokerage firms are promoting 'event contracts,' which are essentially yes-or-no wagers, blurring the lines between investing and gambling.
-
Supermarkets Have Become a Pickpockets' Paradise: How to Avoid Falling Victim
Some stores regularly rearrange inventory with the aim of increasing purchases, and they're creating opportunities for thieves to steal from customers.
-
Dow Adds 516 Points on Broad Optimism: Stock Market Today
Easing trade war tensions and promise from early earnings reports has investors looking on the bright side to start the week.
-
I'm a Wealth Adviser: These Are the Pros and Cons of Alternative Investments in Workplace Retirement Accounts
While alternatives offer diversification and higher potential returns, including them in your workplace retirement plan would require careful consideration.
-
I'm a Financial Planner: If You're Within 10 Years of Retiring, Do This Today
Don't want to run out of money in retirement? You need a retirement plan that accounts for income, market risk, taxes and more. Don't regret putting it off.
-
Five Keys to Retirement Happiness That Have Nothing to Do With Money
Consider how your housing needs will change, what you'll do with your time, maintaining social connections and keeping mentally and physically fit.
-
Six Warren Buffett Quotes Every Retiree Should Live By
The 'Oracle of Omaha' knows a thing or two about life, investing and retirement.
-
Budget Hacks Won't Cut It: These Five Strategies From a Financial Planner Can Help Build Significant Wealth
Cutting out your daily latte might make you feel virtuous, but tracking pennies won't pay off. Here are some strategies that can actually build wealth.