The New Rules of the IPO

Is It the End of the IPO as We Know It?

Founders, companies, and investors are rebelling against the investment banks — and taking matters into their own hands

This story is part of The New Rules of the IPO, a multi-part special report.
Illustrations: James Clapham

By all accounts, 2019 was a terrific year for the stock market, with the Dow Jones Industrial Average rising by more than 22% and the S&P 500 up nearly 29%. But even as a broad range of businesses fared well in 2019, one specific category proved to be a decidedly mixed bag, and it was a surprising one at that: companies that were on the verge of going public.

Though the Renaissance IPO Index ended the year up 35%, beating the broader market, investors, underwriters, and entrepreneurs are left feeling walloped. That’s because a number of headline-grabbing misfires dampened enthusiasm for initial public offerings of stock. WeWork’s yanked IPO was the most high-profile example of trouble, but there are others. Endeavor, the sports, fashion, and talent conglomerate once valued at $7.8 billion, pulled its planned IPO due to a lack of support, as did Postmates, the delivery service, which is now said to be seeking a buyer.