Shutdown in the US may affect the IPO market
According to us media reports, the budget crisis in the United States, which led to the closure of a significant part of state institutions and agencies (shutdown), may have a negative impact on the IPO market.
The fact that currently 4 of 436 employees of the Commission on securities and exchange Commission (SEC) continue its work only 285 employees. Therefore, SEC cannot fully participate in the preparation for the placement of shares of a number of companies on American exchanges that were scheduled for January. The Wall Street Journal reports at least three such offerings — biotech companies Gossamer Bio Inc, Alector Inc. and divisions of larger investment Fund Blackstone Group under the name Alight Solutions.
Despite the fact that January and the first quarter in General are traditionally not the most active period for IPOs in the USA, American observers worry that the shutdown will affect the normal work of the SEC and the market offerings as a whole.
The fact that the current budget crisis has become one of the longest in the history of the country, the situation is complicated by the fact that it is still unknown when the President and Congress can reach agreement on the budget and resume the normal functioning of state institutions.
Read more about government shutdown USA read in the article “Kommersant” “Washington dismissed officials.”
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