In a recent article by the Associated Press, Thompson Coburn Corporate & Securities partner David Kaufman weighed in on the shifting landscape for initial public offerings (IPOs). After a strong start to the year, IPO momentum on Wall Street has slowed, impacted by the government shutdown and growing investor caution. Still, David notes that demand for IPOs remains resilient.
“Increasingly, as a money manager, you have to find other places to make money and typically, IPOs are that place,” said David. “You continue to have all these large mutual funds and money managers with excess cash and no place to put this cash.”
While recent volatility has tempered activity, the broader market remains expensive—particularly in the influential technology sector. Historically, IPOs have offered investors a more affordable entry point compared to established stocks.
Any apparent lull in IPO activity now is deceptive, David added, as companies quietly navigate regulatory hurdles behind the scenes. “It’s a busy time for lawyers and bankers trying to tee things up for the first and second quarter of next year,” he said.
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