Entrepreneurs Pump Brakes on IPOs Amid Investor Uncertainty

Grow Your Business, Not Your Inbox

Stay informed and join our daily newsletter now!
Will be used in accordance with our Privacy Policy
Entrepreneurs Pump Brakes on IPOs Amid Investor Uncertainty
Image credit: Shutterstock
2 min read
This story originally appeared on FOX BUSINESS

Once on fire, the U.S. IPO market took a big hit in October when 15 planned initial public offerings were withdrawn -- the most seen since the market crashed in 2008.

Volatile market conditions have ushered in investor uncertainty, as the Dow Jones Industrial Average swung hundreds of points in both directions last month. Meanwhile, a gloomy outlook for Europe’s economy, threats by terrorist group ISIS and a deadly Ebola crisis have all been blamed for the dips.

Despite the global tumult and uncertainty, according to Dealogic, 30 companies still weathered the storm, opting to go public in October, raising $6.6 billion. That number is down from the previous year’s monthly average of $8.6 billion in IPO volume.

Overall, 2014 has been a blockbuster year for IPOs, raising the most capital since 2000 during the dot com boom. In total, 255 deals so far brought about $85.6 billion in volume this year. Perhaps most noteworthy, September saw the biggest IPO ever when Chinese e-commerce giant Alibaba (BABA) raised $25 billion, choosing to list in the United States during a year that has seen favorable performance for Chinese IPOs.

“This had been the best year for IPOs in a long time, the peak of it was Alibaba but it has cooled tremendously,” Matt Turlip, analyst at private company research firm, Privco said. “The market is going to have to level out the volatility before we see many more IPOs.”

Turlip also pointed out the increased availability of venture capital may lead some companies to stay private for a while. 

“The Ubers, the Airbnbs, a market like this is going to keep them on the private side, much much longer. They can finance their own operations and growth without having to tap the public markets," he said.

Of the companies that did go public this year, the healthcare sector has seen the most activity with 96 IPOs, largely due to a biotech boom. Technology also saw a strong turnout, with 51 companies entering the public markets.

More from Entrepreneur

Get heaping discounts to books you love delivered straight to your inbox. We’ll feature a different book each week and share exclusive deals you won’t find anywhere else.
Jumpstart Your Business. Entrepreneur Insider is your all-access pass to the skills, experts, and network you need to get your business off the ground—or take it to the next level.
Starting, buying, or growing your small business shouldn’t be hard. Guidant Financial works to make financing easy for current and aspiring small business owners by providing custom funding solutions, financing education, and more.

Latest on Entrepreneur

Entrepreneur Media, Inc. values your privacy. In order to understand how people use our site generally, and to create more valuable experiences for you, we may collect data about your use of this site (both directly and through our partners). By continuing to use this site, you are agreeing to the use of that data. For more information on our data policies, please visit our Privacy Policy.