Recent IPOs Seeking Cash Find Themselves Frozen Out by Shutdown

The 2018 IPO class looks especially vulnerable to the impact of an extended government shutdown, thanks to an arcane rule requiring recent listings to wait for regulatory approval before raising cash in a follow-on offering.

President Donald Trump told reporters Jan. 9 that Congressional Republicans are unified behind continuing the shutdown, which he previously warned could last for months -- or even years. While the shutdown prevents companies from moving forward with initial public offerings, those who have already listed face their own set of challenges.

“The dynamic for follow-on offerings might be even more problematic than for delayed IPOs,” ...