Why are IPOs on pause?

2025 was meant to be the year the IPO market roared back to life.

Instead, law firms and dealmakers are watching nervously from the sidelines as stock market volatility clouds the horizon.

What’s Happening?

After a few sluggish years, optimism was high. Big names like Klarna, CoreWeave, and Revolut had their IPO engines revving. Private equity firms, sitting on mature portfolio companies, were eager to cash out via public listings. A post-election rally, spurred by Trump’s pro-business stance, seemed to signal the perfect conditions for a flood of IPOs.

But then the markets wobbled. Trade war talk intensified. Tariff policies flip-flopped. Investors were spooked. Both the Nasdaq and S&P 500 tumbled.

And here’s the key: IPOs thrive on stability. When stock prices swing wildly day-to-day, companies can't confidently price their shares, and investors shy away from risk.

Why Is This Stalling IPOs?

IPOs aren’t just about filing paperwork and ringing the stock exchange bell. They’re a finely tuned process. Companies need months of preparation, detailed financial audits, and regulator approvals. The final step — setting the price and launching the roadshow — hinges entirely on one thing: market certainty.

Volatility undermines that certainty. Investors hesitate to commit. Valuations become unpredictable. And companies risk debuting in a down market, which can hammer their stock price on day one. It’s a recipe for disaster, so most would rather wait for calmer waters.

No CFO wants to launch an IPO roadshow only to watch markets nosedive mid-way. So, companies are pumping the brakes — not cancelling plans, but delaying them, possibly until late 2025.

How this impacts Law Firms