Global IPO plans grind to a halt amid tariff uncertainty
IPOs in the UK and US have been put on hold as markets panic amid uncertainty over the roll-out of US president Donald Trump’s sweeping tariffs.
Last week, Buy Now Pay Later company Klarna paused its IPO thanks to the tariffs, after planning to launch on the New York Stock Exchange later this month.
Klarna’s IPO had been hailed as a “signal of wider fintech recovery,” but along with trading platform Etoro, the firm has decided to hold off on a float until the market turmoil ends.
Other planned IPOs in the US that have been delayed include surgical products company Medline, which had planned to file publicly last week, and ticket company Stubhub.
Last week, investment bank Cavendish said that the rising risks in the US market should provide support for UK IPOs, which have dried up in recent years.
“Whilst this rotation will initially favour the largest and most liquid European and UK stocks, history suggests that any incremental asset allocation to UK equities will ultimately flow through to smaller and mid-cap companies, especially given their attractive valuations,” the investment bank said.
“We believe that a combination of increasing diversification and the compelling valuation of the UK small and mid-cap sector will create significant opportunities in the year ahead.”
However, UK IPOs have been affected by the tariff regime too.
The private equity owners of Shawbrook Bank had delayed plans for a £2bn London listing to the second half of the year, due to the market turmoil caused by Trump.
Fast fashion giant Shein has stayed quiet on its IPO since Trump unveiled his harsh tariffs on China, having planned to list in the UK.
Shein reportedly delayed kicking off the process to list in London in February as news around the tariffs began to emerge.
In addition, the firm is grappling with Trump’s new plan to end tariff-free imports of small goods from China, known as the “de minimus” exemption, where parcels under $800 are excluded from the taxes.