, Columnist
The Dearth of IPOs Weakens Capitalism
U.S. financial markets have long been the envy of the world, but we can’t take that status for granted.
More companies are deciding to delay going public.
Photographer: Spencer Platt/Getty Images North AmericaThis article is for subscribers only.
An initial public offering should be a milestone in a company’s existence, representing the moment it begins to fulfill the promise demonstrated as a young entity. Yet, companies are delaying this moment, choosing instead to remain cloistered in private hands.
The debate is fierce over why more companies are postponing their public debuts. Has it become suddenly harder to function as a public company? Has it become far easier to raise capital privately? The truth is likely a combination.