Last week, we reported that Justworks filed for an IPO that could value the HR, payroll, and management company at $2 billion. π° However, the company has decided to delay its market debut, citing a less-than-ideal investment climate in public markets.
2020 was a marquee year for IPOs despite the pandemic. 159 IPOs raised over $67 billion in proceeds, and 242 SPACs raised $81 billion. While IPOs fared better than SPACs, late 2020 and early 2021 were especially fruitful for most growth names. π π€ That all changed in mid-2021, given concerns about the Fed’s outlook.Β
Justworks’ decision to punt its IPO might be the most memorable walkback in recent memory, but it probably won’t be the last. The company’s decision indicates that there’s little appetite among large corporations for public markets, especially considering the uncertainty about the market’s performance this year amidst the Fed’s latest campaign. In other words, they’d rather play it safe than sorry.π€·
While Justworks decides to sit out a debut, investors will get to see how an IPO stands up in the current environment when private equity companyΒ TPG goes public on Thursday. The company reported that it would price its IPO at the midrange after the market closed today.Β βοΈ