| Government shutdown isn't slowing down IPO plans This could be the biggest week for IPOs since 2021. As many as eight companies could go public this week, four of them in biotech, according to IPO firm Renaissance Capital. The IPOs could happen despite the partial government shutdown, which has closed the Securities and Exchange Commission. Before government funding lapsed, the agency issued notices declaring that each of the biotech's registration statements met legal and regulatory requirements. The notices clear the companies to go public. A traditional IPO isn't the only path to the public markets. One biotech company has already gone public this week via a direct listing. The moolah Across all sectors, Renaissance estimates that 200 to 230 IPOs this year could raise between $40 billion and $60 billion. Why it matters The IPO market improved in 2025, but did not reach the highs expected. Many biotech companies stayed on the sidelines, either waiting for market conditions to improve or turning to alternative ways to secure capital to continue R&D. The backlog of companies waiting to go public has grown. If the current shutdown continues, or if another shutdown happens the next time funding lapses, there are other ways for these companies to enter the public markets. Two biotechs used an obscure securities rule to go public during the government shutdown this past fall. Soundbite "It's definitely a tactic of last resort," Rich Segal, a partner at Cooley, said of the rule outlined in securities law. "I don't think anybody's doing it as the first option, but if the government continues to shut down, we will likely continue to see other companies do this. But I think it's going to be small numbers. If the government's open and functioning, people will do it the regular way." —By Frank Vinluan | 
No comments