Fintech IPOs delayed amid tariff-driven market turmoil
Fintech firms are postponing their initial public offerings (IPOs) due to growing market volatility triggered by new tariff policies. Among those deciding to delay going public are Klarna and StubHub, while Circle remains undecided.
After a few difficult years for major IPOs, venture-backed companies had been hoping for a revival of the IPO market under the Trump administration. However, a new executive order signed on Wednesday imposing customs tariffs — and subsequent retaliatory actions — triggered a market sell-off that continues to intensify.
On Friday, the Dow Jones Industrial Average dropped 4%, while the S&P 500 declined by 4.5%. The Nasdaq, which recorded its worst session since 2020 on Thursday, fell another 4.5% during Friday’s trading and is heading toward its worst week since the early days of the COVID-19 pandemic.
CoreWeave hit by post-IPO volatility
The market shock has already impacted AI infrastructure company CoreWeave, which went public in late March. It became the first U.S.-based, venture-backed tech company to raise at least $1 billion in an IPO since 2021.
However, CoreWeave had to lower its IPO price before the offering and faced a rough first two days on the market. Trading has been extremely volatile since: on Friday, its shares fell 11%, though still remained 18% above the IPO price.
Price dynamics of CoreWeave over the last 5 days. Source: CNBC
Digital physical therapy startup Hinge Health also filed to go public and had planned to start its IPO roadshow by the end of the month. The company has now stated that tariffs are one of the risks that "could limit our ability to scale and negatively impact our operational results."
Klarna, StubHub delay listings; Circle may follow
Swedish "buy now, pay later" firm Klarna had planned to list on the New York Stock Exchange this month under the ticker KLAR. But now, the company cites the negative potential of tariffs as a material risk.
"A downturn in the overall economic environment or slower growth rates — including those resulting from changes in international trade policy, multilateral agreements, or the imposition of new tariffs, taxes, or trade restrictions — may lead to reduced consumer spending and negatively affect the financial condition of our merchants," Klarna stated in its IPO prospectus.
Ticketing marketplace StubHub also planned to go public under the ticker STUB, with its roadshow set to begin Monday, April 7. It has now decided to pause the process.
Sources indicate that Circle, the issuer of the USDC stablecoin, is also reconsidering its IPO. According to The Wall Street Journal, people familiar with the matter say Circle is now uncertain about whether to proceed, even though it filed registration documents with the SEC on April 1.
As we wrote, swedish fintech giant Klarna is preparing to accept cryptocurrency, responding to growing demand from its vast user base.
Latest Finance News
-
Afghanistan
-
Albania
-
Algeria
-
Angola
-
Argentina
-
Armenia
-
Australia
-
Austria
-
Azerbaijan
-
Bahamas
-
Bahrain
-
Bangladesh
-
Belarus
-
Belgium
-
Bolivia
-
Botswana
-
Brazil
-
Brunei
-
Bulgaria
-
Cambodia
-
Cameroon
-
Canada
-
Chile
-
China
-
Colombia
-
Congo
-
Costa Rica
-
Cote d'Ivoire
-
Croatia
-
Cuba
-
Cyprus
-
Czechia
-
DR Congo
-
Denmark
-
Dominican Republic
-
Ecuador
-
Egypt
-
El Salvador
-
Estonia
-
Eswatini
-
Ethiopia
-
Finland
-
France
-
Georgia
-
Germany
-
Ghana
-
Greece
-
Haiti
-
Hong Kong
-
Hungary
-
India
-
Indonesia
-
Iran, Islamic republic
-
Iraq
-
Ireland
-
Israel
-
Italy
-
Jamaica
-
Japan
-
Jordan
-
Kazakhstan
-
Kenya
-
Korea
-
Kuwait
-
Kyrgyzstan
-
Laos
-
Latvia
-
Lebanon
-
Lesotho
-
Libya
-
Lithuania
-
Luxembourg
-
Madagascar
-
Malaysia
-
Malta
-
Mauritius
-
Mexico
-
Moldova
-
Mongolia
-
Montenegro
-
Morocco
-
Mozambique
-
Myanmar
-
Namibia
-
Nepal
-
Netherlands
-
New Zealand
-
Nigeria
-
North Macedonia
-
Norway
-
Oman
-
Pakistan
-
Palestine
-
Panama
-
Papua New Guinea
-
Paraguay
-
Peru
-
Philippines
-
Poland
-
Portugal
-
Puerto Rico
-
Qatar
-
Reunion
-
Romania
-
Rwanda
-
Saudi Arabia
-
Serbia
-
Singapore
-
Slovakia
-
Slovenia
-
Somalia
-
South Africa
-
Spain
-
Sri Lanka
-
Sweden
-
Switzerland
-
Syria
-
Taiwan
-
Tajikistan
-
Tanzania
-
Thailand
-
Trinidad and Tobago
-
Tunisia
-
Turkey
-
UAE
-
Uganda
-
Ukraine
-
United Kingdom
-
United States
-
Uruguay
-
Uzbekistan
-
Venezuela
-
Vietnam
-
Yemen
-
Zambia
-
Zimbabwe
- Forex
- Crypto
