Jay Ritter
Cordell Eminent Scholar Jay Ritter

Crunchbase | The longer IPOs delay, the less likely debuts will happen

Going public is not a decision any company takes lightly. For complex, high-revenue businesses in particular, an IPO filing reliably requires years of preparation and hefty investment.

Likewise, postponing or canceling a planned debut is never a flippant choice. Sometimes there’s a positive reason, like an acquirer swooping in with an attractive offer. More commonly, it’s a negative one, like a market downturn.

Over the past couple weeks, as we’ve seen KlarnaStubHub and others delay scheduled pre-IPO roadshows, it appears markets are to blame. It was tough to feel good about going public in a week in which Dow Jones posted its third-largest daily point loss in history.

That’s reasonable enough. But for market watchers, the questions remain: Where do IPO candidates go from here? Will they resume roadshows? Is the new offering market in for a long freeze?

Jay Ritter shares his insights and research from alumnus Jarrod Humphrey (BSBA ’10, MBA ’18, Ph.D. ’23) informs this story from Crunchbase