Choppy Waters for IPOs: Startups Struggle Amidst Rising Interest Rates
Portfolio Pulse from Aditi Ganguly
The IPO market has been struggling due to rising interest rates and recessionary headwinds. High-profile IPOs like Arm Holdings (NASDAQ:ARM) and Instacart (NYSE:CART) have seen their stocks wobble soon after listing, with Arm's stock falling nearly 15% and Instacart's plunging over 24%. The Federal Reserve's plan to continue raising interest rates has deterred companies from going public due to concerns about rising borrowing costs. The current hawkish backdrop is unfavorable for IPOs as growth expectations and funding availability remain low.
October 09, 2023 | 12:52 pm
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NEGATIVE IMPACT
Arm Holdings' stock has fallen nearly 15% since its listing on Sept. 14. The rising interest rates and recessionary headwinds have negatively impacted the stock.
The rising interest rates and recessionary headwinds have negatively impacted the stock of Arm Holdings. The Federal Reserve's plan to continue raising interest rates has deterred companies from going public due to concerns about rising borrowing costs.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Instacart's stock has plunged over 24% since its IPO on Sept. 19. The rising interest rates and recessionary headwinds have negatively impacted the stock.
The rising interest rates and recessionary headwinds have negatively impacted the stock of Instacart. The Federal Reserve's plan to continue raising interest rates has deterred companies from going public due to concerns about rising borrowing costs.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100