15 Apr TARIFF TURMOIL IMPACTS IPO ACTIVITY; WAVE OF UNCERTAINTY HITS KMD
TARIFF TURMOIL IMPACTS IPO ACTIVITY
Fewer initial public offerings (IPOs) are expected in 2025 with many companies pausing plans to list after US President Donald Trump’s ‘Liberation Day’ tariffs smashed global financial markets and caused ongoing chaos.
Venture capitalists say it is getting harder to raise funding and Trump’s tariffs have threatened to prolong Australia’s IPO drought, as reported in The Australian this week. At the start of the year the ASX had expected a rebound in IPOs in 2025.
A number of upcoming US IPOs, including $15bn fintech Klarna and $50bn medtech company Medline, have been shelved, according to the Financial Times.
Meanwhile, Virgin Australia’s owner Bain Capital is pushing ahead with preparations for a June IPO, formalising new board appointments amid tariff-related turmoil.
WAVE OF UNCERTAINTY HITS KMD
On Monday, KMD Brands, which owns Rip Curl, Kathmandu, and Oboz, shares fell 5 per cent as investors frantically panicked over the company’s future sales to the US, according to The Australian. Why? Trump’s tariff tsunami.
KMD Brands manufactures their outdoor lifestyle products in Asia, however, the US is responsible for a large portion of annual sales. With Rip Curl US accounting for 12 per cent of sales and Oboz US accounting for 7 per cent, new import duties are set to sting.
To protect the company’s value and its investors, CEO Brent Scrimshaw said KMD will redirect some US inventory to other markets and reassess pricing and cost strategies. With tariff deals still uncertain, the company’s best bet might be to hang ten and hope the tide turns.
DUTTON BACKS DOWN, WFH STAYS PUT
In a major U-turn, Opposition Leader Peter Dutton has abandoned the Coalition’s plan to mandate a full-time return to the office for public servants, admitting, “We’ve made a mistake”, reports The Guardian. This backtrack follows widespread criticism from unions and flexible work advocates.
According to the Australian Financial Review, studies have found employees who work from home two days a week are just as productive and promotable – but far less likely to quit – than their counterparts.
Though aimed at public servants, Labor warned the policy could set a precedent for the private sector. Polling found the changes were most unpopular among women and working families who depend on workplace flexibility. So, for now, the WFH policy lives on.
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