US-Iran Conflict Still Impacts Corporate IPOs, Regulators Focus on Inquiries About Overseas Risks, Some Projects Delayed

Caixin News, March 15 — (Reporter Zhao Xinrui) The escalation of conflict between Iran and the United States has begun to impact the IPO market. Among them, companies planning to go public with higher revenue shares from the Middle East have been closely questioned about the potential impact of the conflict on their performance; at the same time, many international IPO projects have postponed their listing roadshows and original issuance plans amid strong wait-and-see sentiment.

In this market context, two companies scheduled for review this week both have significant or dependent overseas market revenues, and were closely scrutinized for related risks during their inquiries.

On March 12, Xinseng Technology, sponsored by Guoxin Securities, passed the IPO review at the Beijing Stock Exchange. This was the company’s second review this year. During its first review on January 16, regulators focused on the company’s overseas market risks, requiring explanations on whether demand growth in markets such as India and Pakistan is sustainable.

On March 13, GFD Securities-sponsored Jiadeli on the Shanghai Main Board also successfully passed the review. Unlike Xinseng Technology, this was Jiadeli’s first review, coinciding with a critical point of escalation in US-Iran conflict, making the inquiry more targeted. Regulators asked the issuer to explain, considering reliance on overseas raw materials and equipment, recent geopolitical developments, supply and price fluctuations of key raw materials, core competitive advantages, supplier switching cycles, and cost transmission capabilities, whether there is a risk of significant decline in operating performance.

Market volatility caused by the US-Iran conflict continues, and investor sentiment remains cautious. Although companies in defense technology and related fields are accelerating their IPO processes leveraging industry benefits, most companies planning to go public have delayed their plans due to soaring oil prices, supply chain concerns, and high geopolitical uncertainty, maintaining a wait-and-see attitude.

Overseas Market Risks Under Regulatory Focus

As the US-Iran conflict intensifies, geopolitical issues and reliance on overseas markets have become core concerns in regulatory inquiries for IPO candidates.

The first company to be reviewed this week was Xinseng Technology, accepted on June 26, 2025. It underwent two rounds of inquiries within half a year and had its first review on January 16, 2026. Subsequently, on January 19, regulators provided further feedback on some issues, and on March 5, the issuer completed its responses. On the same day, regulators issued a second review notice, highlighting a tight listing schedule.

According to the prospectus, the company mainly engages in the research, production, and sales of computer embroidery machines, with products divided into flat embroidery machines and special machines based on embroidery techniques. Notably, the prospectus prominently warns of risks related to geopolitical conflicts and trade frictions involving major export markets. The company’s export revenue exceeds domestic revenue, with key clients mainly in India and Pakistan, which have long been the company’s top two customers.

Specifically, the markets in India and Pakistan contribute significantly to the company’s revenue. Data shows that sales to Pakistani clients were 89.7 million yuan, 50.9 million yuan, 161 million yuan, and 85.6 million yuan in different periods, accounting for 15.73%, 7.64%, 16.22%, and 13.44% of main business revenue respectively; sales to Indian clients were 117 million yuan, 155 million yuan, 238 million yuan, and 156 million yuan, accounting for 20.47%, 23.31%, 24.00%, and 24.43% respectively.

However, geopolitical conflicts between India and Pakistan occurred in April-May 2025, but due to their short duration and limited scope, the company’s orders from these clients were not significantly affected.

Similarly, Jiadeli on the Shanghai Main Board was also scrutinized for overseas risks.

According to the prospectus, the company’s raw materials are mainly purchased from Bolo, a supplier that is the sole distributor of Nordic chemical resin materials in China, shipped from a Belgian port via the Cape of Good Hope route. Additionally, the prices of key raw materials are linked to crude oil and propylene prices, which could experience large fluctuations due to geopolitical factors, supply and demand, or emergencies. Equipment suppliers include German company Brückner, from whom the company procures eight BOPP production lines, including three in operation.

It is evident that overseas supply and trade policy risks are prominent for the company, and the review focused heavily on reliance on overseas sources, raw material supply and price fluctuations, and geopolitical risks.

It is noteworthy that although both companies successfully passed review, overseas market risks are now routine concerns in domestic regulatory reviews. Compared to this, some overseas IPO projects have already been impacted by geopolitical developments.

Some International IPOs Postponed Due to US-Iran Conflict

The escalation of the US-Iran conflict has not only affected domestic IPO plans but also impacted international IPO projects scheduled for 2026.

One such project is online travel agency Loveholidays, which planned to list in London in early March 2026. It was regarded as the first major IPO project at the London Stock Exchange in 2026. However, as the US-Iran situation worsened, causing turmoil in Gulf region tourism, with over 10,000 flights canceled—including flights to popular destinations like Dubai—Loveholidays had to postpone its listing plans.

The company initially planned to announce its IPO in early March, with a target valuation of up to 1 billion pounds. After postponement, it is considering rescheduling for after the Easter holiday during the peak travel season. Some foreign sources say the company still hopes to list in London, but with industry peers selling off, whether now is the right time remains under discussion. This highlights the cautious attitude and timing dilemmas faced by international companies planning IPOs amid Middle East conflicts.

Similarly, IPO plans in Brazil have been affected. Market reports indicate that BRK Ambiental Participações, Brazil’s largest water utility, is considering delaying its IPO, originally planned to raise about 4 billion reais (roughly 5.2 billion RMB), which would be Brazil’s first large IPO since 2021. If successful, it would end a four-year drought in Brazil’s IPO market.

Analysts believe that the core reason for the delay is the global market sell-off triggered by escalating tensions in the Middle East, combined with the company’s own operational factors, forcing a slowdown in the listing process.

Impact of US-Iran Conflict on the Global IPO Market

Currently, as geopolitical tensions continue to escalate, whether the US IPO market will slow down has become a focus of discussion.

In response, Lynne Martin, President of the New York Stock Exchange Group, recently stated that geopolitical tensions are unlikely to hinder IPOs. Although the geopolitical situation is constantly changing, well-prepared companies can still access the public markets. Geopolitical risk is a factor to consider when planning an IPO but is not a decisive one.

Foreign investment banks analyze that private equity and other investment firms remain optimistic about global acquisitions and IPOs, closely monitoring geopolitical developments.

Vikram Chawla, head of financial sponsorship at Citigroup Asia-Pacific, pointed out that private equity, infrastructure funds, sovereign wealth funds, pension funds, family offices, and hedge funds currently hold large amounts of capital and are seeking suitable investment channels to generate returns. The firm is engaging with these institutions, including considering opportunities in the Hong Kong IPO market. The main reason is that Chinese assets offer relatively attractive valuations, and investors are highly interested in sectors such as consumer goods, healthcare, technology, AI, and industrials, making China an important focus for foreign investment.

Overall, the future of the US IPO market still depends on the evolution of geopolitical tensions and further monitoring of companies’ listing schedules.