The Strategist

WSJ: Omicron now makes it difficult for US companies to celebrate IPOs

01/11/2022 - 06:26

The spread of the omicron strain in the US has forced upcoming companies to rethink their plans. Some of them are refusing to celebrate their debut widely, while others are postponing their IPOs altogether, the WSJ says.

Ian Lamont
Ian Lamont
The rapid spread of the Omicron strain in the United States is complicating the interaction with stock exchanges for companies planning to launch IPOs earlier this year, bankers and knowledgeable sources told The Wall Street Journal.

Some companies that have begun preparations for initial public offerings are now revising plans to celebrate the day of listing and others have delayed listing altogether, they said. For example, private equity firm TPG had hoped to hold an in-person celebration of its IPO, but because of the Omicron those plans have changed, and only a few executives will be able to personally strike the Nasdaq exchange bell to mark the start of trading in the company's shares next week, sources told the publication. 

Executives at online bank Dave had also planned to travel to New York to celebrate its stock market debut on January 6, but were forced to change plans due to high levels of COVID-19 infection and stay in Los Angeles.

The New York Stock Exchange and the Nasdaq exchange still allow CEOs to ring the IPO bell in person. But in late December, the NYSE required ceremony guests to be vaccinated and pass a negative coronavirus test at least 24 hours before their scheduled visit. Nasdaq has also tightened its policy on guests, reducing the time for a PCR test from 48 hours to 24 hours.  In addition, they are required to present a certificate of vaccination.


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