Elusive IPOs

The Arm share price has hovered around its €51 offer price since the IPO, persuading VCs to advise startups to postpone IPOs until US interest rates have peaked.

 To an extent, expectations  were deflated because, on September 20th, six days after the Arm IPO,  the Fed indicated that it might mandate another interest rate rise this year.

The FT quoted Index partner Mike Volpi saying: “We would advise: unless you really need to, hold back. The market has been rough in the past few weeks . Unless you need to go out, I’d wait until the second half of next year.”

PitchBook reckons there are 80 companies waiting to IPO.

Some companies may be forced to go to market because they need cash and some VCs may decide on an IPO because the VCs need cash but, without those needs, it’s best to wait.