No IPOs launched on Monday morning, an early indication that the coronavirus may be taking a toll on the IPO market. In four of the past five years, at least one IPO launched on the Monday following Presidents' Day, though activity typically picks up in early March. IPOs may be delaying for two reasons.
1.) Stock market volatility
Companies avoid going public during market sell-offs and spikes in volatility. On Monday, the VIX Volatility Index surged to its highest level since December 2018. Warner Music Group (WMGC.RC), The AZEK Company (AZEK), and GFL Environmental (GFL) were prime candidates to launch IPOs on Monday, based on their recent filings. However, none cite the coronavirus as a risk. AZEK and GFL have virtually no direct exposure to China, and the impact to Warner Music should be modest. These three are likely waiting for volatility to settle down...
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