Fintech Postpones IPO As Software Sell-Off Spooks Investors

Just as the IPO market was picking up momentum, one of the biggest IPOs so far this year was suddenly shelved Friday. Clear Street Group reportedly postponed its initial public offering, citing market conditions.

The New York-based fintech will reconsider its IPO at a later time, Bloomberg and Reuters reported. Also this week, another fintech cut its IPO price, while yet another company also put its offering on hold.

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On Thursday, Clear Street slashed its IPO from 40 to 44 per share to a revised range of 26 to 28 per share, an SEC filing showed. At the midpoint of the revised offering, once set at $1 billion, Clear Street would have raised 65% less in proceeds than initially planned, according to IPO analysis firm Renaissance Capital.

The IPO was scheduled for Friday, one of several in a growing IPO calendar. But investors have punished software stocks amid fears that artificial intelligence applications will replace financial, legal and other tasks now handled by software.

IBD’s Software sector is currently the weakest among 33 sectors, down 21.7% since Jan. 1.

New York-based Clear Street provides a cloud-based platform that unifies brokerage, clearing and other capital markets services. The platform, the firm says, replaces a system of fragmented workflows with a single real-time ledger.

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IPO Price Range Cut

Asset manager BlackRock (BLK) planned to buy $200 million worth of shares on the IPO, a purchase it still intended to make after the price range was cut, Renaissance said.

In another IPO stumble, Brazil-based fintech AGI (AGBK) cut the price of its offering right before it started trading on Wednesday. It went public at 12 per share after cutting the range to 12 to 13 a share from an initial range of 15 to 18, Renaissance said. The stock traded around 10.35 Friday morning.

Liftoff Mobile postponed last week’s scheduled IPO. The app-advertising platform cited market conditions, Bloomberg reported.

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