“The companies that are successful in going to market are the ones with strong fundamentals.” – 03:39
Rob Schoder Jr., CEO & Co-Founder of Vinyl Equity, joins Remy Blaire to discuss the U.S. IPO market, which has experienced a notable resurgence, raising nearly $53 billion in the first three quarters of the year—the highest amount since 2021. However, this positive momentum faces a significant challenge due to the recent government shutdown, which has halted operations at the SEC and suspended the processing of IPO paperwork. As companies prepare for what could be a busy end to the year and a promising 2025, many may be forced to delay their IPO plans.
Rob provides insights into the implications of the government shutdown on the IPO market, explaining that the SEC’s inability to approve filings means that no new entries will occur during this period. While a few IPOs managed to navigate the regulatory hurdles just before the shutdown, the overall deal pipeline is now on hold.
The discussion also covers the broader market context, with major U.S. stock averages reaching new record highs and an increase in M&A activity. Rob highlights that historically, government shutdowns have not had a catastrophic impact on the markets, noting an average 13% increase in the following year. However, he warns that the duration of the shutdown could lead to heightened volatility and investor uncertainty.
As they look ahead to the end of 2025, Rob emphasizes the strong fundamentals of companies that are ready to go public. Many of these companies have been preparing for years and are simply waiting for the right moment to enter the market. He mentions that the current IPO pipeline is the largest he has seen in decades, with many companies poised for success once the regulatory environment stabilizes.
Remy and Rob also discuss various catalysts that could influence the market, including potential rate cuts and changes in the regulatory landscape. Rob points out the unique dynamics of today’s market, characterized by a heavy retail influence that may not always align with economic realities. He believes that if the Federal Reserve lowers interest rates, it could significantly boost retail investor sentiment and lead to more IPO opportunities.