A backlog at the SEC, concerns about tech stocks, and the government shutdown have slowed down IPO activity on Wall Street. Despite this, companies like Central Bancompany and Medline are still planning to go public in November and December. Recent IPOs like Figma and Klarna have seen their gains dwindle, reflecting a more cautious market sentiment.

The S&P 500 is down 3.5% in November, led by a decline in the tech sector. The Nasdaq is up over 15% for the year, but the Renaissance Capital IPO Index is down nearly 0.8% as of Friday. Concerns about the market’s valuation and recent pullbacks have impacted investor sentiment towards IPOs.

Despite recent setbacks, demand for IPOs remains strong as investors look for opportunities in a market that remains expensive, especially within the tech sector. The direction of the broader market in the new year will influence the costs and types of IPOs. Companies like Databricks, Canva, and Plaid are among the big tech names expected to go public in 2026.

While there may be a lull in IPO activity for the rest of the year, there is still significant activity happening behind the scenes as companies prepare for IPOs in the first and second quarter of next year. Lawyers and bankers are busy getting companies ready for their market debuts next year.

Read more at Yahoo Finance: IPO market’s red-hot year has been cooled by the shutdown and more caution among investors