Nasdaq CEO flags IPO slowdown amid market volatility

An initial public offering, or IPO, is the first time a company sells shares to public investors. Going public means those shares can begin trading on a stock exchange, such as Nasdaq. The company moves from relying mainly on private funding to accessing public-market capital.

In an IPO, the company usually issues new shares and receives the proceeds. Investors buy those shares because they expect the business may grow and become more valuable. The exchange provides the marketplace, while other financial firms help organize the offering and set its terms.

The article shows why timing matters. Nasdaq recorded 167 new listings in the third quarter, down from 205 a year earlier. Oura postponed its September debut, while Holtec Nuclear withdrew its planned US IPO. Both decisions reflected volatile markets and weak sentiment, which can make going public less attractive.

Nasdaq’s new-listing activity fell by 38 companies in the third quarter. Listings dropped from 205 in the year-earlier period to 167 in the latest quarter. That equals an approximate 18.5% decline, calculated against the earlier total. The fall signals weaker IPO activity, even though companies still want access to public capital.

The change reflects a tougher environment for new offerings. Higher borrowing costs, elevated US Treasury yields, geopolitical tensions and lower investor risk appetite made public listings more difficult. Reuters also reported that several companies postponed or withdrew their planned offerings during the two-month slowdown.

The decline does not mean interest in public markets disappeared. Adena Friedman said Nasdaq’s long-term listings pipeline remained robust. However, Matt Kennedy said many potential issuers were shifting their timelines to 2027, making a rapid recovery before the end of 2026 unlikely without renewed enthusiasm for artificial intelligence stocks.

Companies postpone or withdraw IPOs when market conditions make a successful offering harder to achieve. Volatility makes share prices more difficult to value. Weak investor sentiment can also reduce demand, forcing a company to accept less money or delay until conditions improve. This matters because an IPO is intended to raise capital at a workable price.

Oura postponed its planned Nasdaq debut in September, citing volatile market conditions. Holtec Nuclear withdrew its planned US IPO amid unfavourable sentiment in equity markets and the nuclear sector. Several other companies delayed offerings during the same period. These decisions show that sector-specific concerns can combine with wider market pressure.

The article links the difficult environment to an energy price shock, renewed inflation worries, higher borrowing costs and elevated US Treasury yields. Nasdaq’s long-term pipeline remained strong, but some companies were shifting their timelines to 2027. A broader recovery therefore remains uncertain.

When volatile markets and weak risk appetite reduce demand, a company’s IPO becomes harder to complete on its planned terms. The company may delay the offering, withdraw it, reduce the price or sell fewer shares. In each case, it may raise less capital than expected or postpone access to public investors.

High US Treasury yields can make safer assets more appealing relative to newly issued shares. Market volatility also makes it harder to judge what a new company is worth. Oura postponed its Nasdaq debut, and Holtec Nuclear withdrew its planned US IPO amid unfavourable market and sector sentiment. These are examples of issuers stepping back rather than launching into weak demand.

The article reports that IPO activity slowed over two months, with several companies postponing or withdrawing listings. Nasdaq still had a strong long-term pipeline, but near-term uncertainty remained. Matt Kennedy said many companies were moving timelines to 2027.

Higher borrowing costs can reduce investors’ appetite for risk because financing becomes more expensive and economic growth may appear less certain. Inflation concerns add another worry. They can raise expectations for continued restrictive monetary policy and make future company earnings harder to assess. Together, these pressures can reduce demand for newly issued shares.

Elevated US Treasury yields are important because they can make government debt more attractive compared with a volatile IPO. Investors may therefore demand a lower share price or wait for clearer conditions. The article says an energy price shock revived global inflation concerns and complicated the monetary policy outlook, while higher borrowing costs weighed on risk appetite.

For companies, weaker demand can mean delaying or withdrawing an offering. Reuters reported a slowdown in IPO activity, and Oura and Holtec Nuclear changed their plans. Nasdaq’s pipeline remained robust, but a broad recovery was clouded by economic and market uncertainty.

The company decides to seek public capital and prepares financial and business information for investors. Investors assess the opportunity and decide whether to buy the shares. An underwriter, typically an investment bank, helps structure the offering, market it, gather orders and set a suitable price. The stock exchange reviews listing requirements and provides the trading venue.

Nasdaq’s role is visible in the article. It recorded 167 new listings in the third quarter and said its long-term pipeline remained strong. Companies such as Oura were preparing to list there, while Holtec Nuclear planned a US IPO before withdrawing it. Investors’ risk appetite and market sentiment influenced those decisions.

The article does not detail underwriters’ specific actions. In standard IPO practice, they connect issuers with investors and help manage pricing and distribution. Nasdaq supports companies entering public markets, but it cannot remove wider economic, geopolitical or sector-specific risks.

Companies seek public-market capital because an IPO can provide money from a broad group of investors. That funding can support business plans, while a listing gives the company access to public markets. The article says Nasdaq’s strong pipeline suggests companies still view public markets as an important source of capital.

Selling new shares is different from ordinary stock-market trading. In an IPO, the company issues shares and receives the money raised. In later trading, one investor generally sells an already issued share to another investor. The company usually does not receive the proceeds from those later transactions. Underwriters commonly help organize the initial sale, while the exchange provides trading infrastructure.

Market conditions affect both demand and timing. Nasdaq recorded 167 listings, down from 205 a year earlier. Oura postponed its debut, and Holtec Nuclear withdrew its IPO. These examples show that companies may delay raising public capital when investors become cautious.