Navan IPO tumbles 20% after debut using SEC shutdown workaround, raising investor concerns over regulatory risks.
Matilda
Navan IPO Tumbles 20% After Historic SEC Debut
Why did the Navan IPO tumble 20% after its historic SEC debut? Navan’s IPO tumble of 20% made headlines as the corporate travel startup became the first company to list under the SEC’s new shutdown workaround. The company, formerly known as TripActions, priced shares at $25 but closed significantly lower on its first Nasdaq trading day, valuing the 10-year-old firm at roughly $4.7 billion. Image : Google The sharp drop reflects investor caution over the experimental nature of this regulatory path. With the SEC partially shut down since October 1, Navan’s IPO relied on an automatic approval process that skips final manual review — a first in U.S. market history. What is the SEC shutdown workaround Navan used for its IPO? The SEC’s “shutdown workaround” allows IPO filings to proceed automatically 20 days after submission if no active regulator review is available. This temporary rule, designed to keep capital markets moving during government shutdowns, gives companies the green light to list…
