Reuters: IPOX® Research Associate Muehlbauer Comments on Liftoff Mobile's Withdrawn IPO Plans
A recent Reuters article reports that Blackstone-backed mobile app marketing provider Liftoff Mobile has officially withdrawn its U.S. IPO plans for the time being. The company had initially sought to raise up to $762 million at a valuation of $5.17 billion but shelved the listing amid a severe rout in software and IT stocks. The sharp selloff has been largely driven by investor fears that fast-advancing generative artificial intelligence tools could unleash steep competition, narrow established economic moats, and pressure margins for traditional software firms.
The broader sector slump has injected a wave of caution into the IPO market, prompting several issuers, to trim valuations or postpone their debuts, including Wall Street broker Clear Street. Despite the setback for Liftoff Mobile, the article notes that Blackstone continues to prepare what it calls one of the largest IPO pipelines in its history, waiting for volatility to subside.
IPOX® Research Associate Lukas Muehlbauer was featured in the article, providing commentary on why private equity sponsors are choosing to delay offerings rather than force deals in an anxious market environment.
"For private equity firms like Blackstone, withdrawing an IPO in unfavorable conditions is often preferable to accepting a disappointing valuation."
In additional unpublished correspondence, Muehlbauer expanded on the current IPO landscape, noting that the uncertainty over AI's impact has created a distinct "wait-and-see" approach among investors.
Further IPOX® Insights on the Market Dynamic:
Healthy Market Skepticism: The current selectivity is a positive indicator that the IPO market hasn't overheated. Disciplined pricing prevents excessive valuations and gives new listings a better chance of holding up in the aftermarket, ultimately benefiting long-term investors.
Valuation Pushback: Deals can still get done, but the market is highly selective and unwilling to buy software or fintech IPOs at any price.
Pockets of Strength: While candidates in volatile software sectors may choose to wait, the underlying IPO pipeline remains robust. Muehlbauer points to continued strength in AI-adjacent infrastructure plays, highlighting recent successful launches by datacenter equipment maker Forgent Power and solar firm SOLV Energy.
Read the full article by Utkarsh Shetti on Reuters: Blackstone-backed Liftoff Mobile shelves US listing plans amid software selloff
