Stock Markets February 17, 2026

IPO Plans Falter in 2026 as Volatile Markets and Valuation Pressure Bite

Companies from fintech to app marketing pull back or shrink U.S. listings amid investor scrutiny and software selloff

By Ajmal Hussain
IPO Plans Falter in 2026 as Volatile Markets and Valuation Pressure Bite

A wave of postponements and reduced deal sizes has hit 2026 initial public offerings in the United States as market turbulence, tougher valuation checks and weak peer showings curb the pipeline for new listings. Notable issuers including Clear Street, Agibank and Liftoff Mobile have each taken steps to trim or halt plans while monitoring conditions.

Key Points

  • Market volatility and valuation scrutiny have led multiple companies to trim, delay or withdraw U.S. IPO plans in 2026.
  • Notable issuers affected include Clear Street (postponed after cutting fundraising target by 65%), Agibank (raised $240 million in a downsized offering; shares fell nearly 15% from the offer price) and Liftoff Mobile (filed to withdraw U.S. IPO plans after earlier postponement).
  • Sectors directly impacted include financial services and fintech, software and technology-driven marketing services, reflecting sensitivity to software stock performance and investor appetite.

Several firms that had planned U.S. initial public offerings in 2026 have either cut the size of their deals, delayed listings or withdrawn plans as market volatility, closer inspection of valuations and disappointing peer performance weigh on investor demand.

Goldman Sachs analysts said earlier this month they expect the number of IPOs to double to 120 this year, but they also noted that a selloff in software stocks has highlighted valuation risks. In recent weeks, companies from different corners of the market have reacted to that environment by adjusting or pausing their U.S. listing plans while they wait for calmer market conditions and clearer investor appetite.

Clear Street

Wall Street broker Clear Street postponed its U.S. IPO on Thursday, citing "market conditions." The New York-based firm had already slashed the fundraising target for the offering by 65% just hours before the postponement, and this marks the company's second delayed listing this month. Company officials said they intend to reconsider a listing at a later time, effectively pausing their U.S. public debut until volatility subsides.

Agibank

Brazilian fintech Agibank moved forward with a substantially downsized U.S. listing. The Sao Paulo-based company raised $240 million after reducing both the proposed deal size and the price range sharply. Agibank sold 20 million shares at $12 apiece; the company had previously offered roughly 43.6 million shares with a price range between $15 and $18 per share. The stock debuted on Wednesday and by Thursday's close was down nearly 15% from the offer price.

Liftoff Mobile

Blackstone-backed Liftoff Mobile, a mobile app marketing provider, filed to withdraw its planned initial public offering in the United States after a broader rout in software stocks dampened investor enthusiasm for new listings. Earlier in the month the company had postponed its planned offering, citing "current market conditions." Liftoff had been seeking to raise as much as $762 million before stepping back.

Across these examples, issuers cited market conditions and investor caution as the primary reasons for pausing or shrinking their U.S. IPO plans. The moves reflect heightened scrutiny of aggressive pricing and lofty valuations, particularly in sectors sensitive to software stock performance and broader funding sentiment.


Contextual note - Company actions include postponements, deal-size reductions and outright withdrawals as they await less volatile market conditions and clearer signals from investors regarding pricing and valuation expectations.

Risks

  • Continued market volatility could keep IPO activity subdued, particularly for companies in software and technology-adjacent sectors.
  • Heightened investor scrutiny of aggressive pricing and high valuations may force issuers in financial services and fintech to reduce deal sizes or postpone listings.
  • Weak performance among peer companies can undermine investor demand for new listings, increasing the chance of further withdrawals or delays in capital markets.

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