Business software company Justworks Inc., which specializes in human resources applications, has decided to postpone its initial public offering (IPO

Justworks IPO Postponed

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2022-01-13 20:30:09

Business software company Justworks Inc., which specializes in human resources applications, has decided to postpone its initial public offering (IPO), which was due to be priced late on Jan. 12, 2022, and to begin trading on Jan. 13. "Justworks has decided to delay its IPO due to market conditions at this time," according to a statement from the company.

Justworks plans to keep its prospectus on file with the Securities and Exchange Commission (SEC) and will continue to update it, a source familiar with the situation told Barron's. Meanwhile, Justworks' decision comes amid a general selloff among technology and software shares.

Some observers believe that the withdrawal of the Justworks offering suggests that the IPO window is closing. IPOs enjoyed their busiest year ever during the first 11 months of 2021, but inflation and fears about the omicron variant of COVID-19 put the brakes on IPO activity in December, when only a dozen companies went public.

Recently, four biotech companies have gone public, posting poor results. In particular, Hillstream BioPharma Inc. (HILS) dropped 13% from its offering price, making it a so-called broken deal.