Wall Street’s IPO pipeline has slowed sharply, with investor appetite for new listings weakening at a time when concerns over aggressive valuations are building. What had been expected to become a stronger quarter for public offerings is now facing pressure as demand for fresh deals remains soft. Delays to potential listings from Anthropic and OpenAI have also hurt sentiment in the U.S. equity capital markets, removing two of the names that had helped sustain enthusiasm around the AI trade.
A senior equity capital markets executive at a large U.S. asset manager said that, at this point, investors are focused almost exclusively on Anthropic. Bankers’ deal activity this year had been supported in large part by SpaceX’s June IPO, but the market has dried up in recent weeks. Concerns about a downturn in the AI sector, along with public opposition to data centers, have added to the pressure. Data from BCA Research shows that technology companies that went public this year are down about 23% on average from their first trading day, adding to worries that banks have been pricing deals too aggressively in order to win underwriting mandates.
Wall Street’s IPO market has slowed to a near standstill, with weak demand for new listings and growing concern over stretched valuations putting pressure on a quarter that had been expected to bring a stronger wave of offerings.
AI listing delays weigh on market mood
According to Sina Finance, delays to potential public listings by Anthropic and OpenAI have hurt sentiment across the U.S. equity capital markets. A senior equity capital markets executive at a large U.S. asset manager said, 「Right now, nobody cares about any company other than Anthropic.」
The report said investment bankers’ strong business this year was driven in large part by SpaceX’s June IPO.
Tech IPO performance adds to pricing concerns
In recent weeks, however, the IPO market has dried up as worries about a downturn in the AI sector have grown and public opposition to data centers has increased. The same banker said investors are increasingly questioning the 「detached from reality」 valuations given to companies tied to the AI investment boom.
Data from BCA Research shows that technology companies that went public this year have fallen about 23% on average since their first trading day. That has added to market concern that banks have been pricing deals too high in order to secure underwriting business.
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