WASHINGTON—The so-called JOBS Act is yet to deliver a big boost to initial public offerings.
The one-year-old law, officially the Jumpstart Our Business Startups Act, was aimed at helping companies with less than $1 billion in sales go public. But IPOs of such companies in the year since the law was enacted are on track to fall 21%, to 63 from 80 in the year prior, according to Jay Ritter, a University of Florida professor who tracks IPOs.
The law, which passed with bipartisan support, grants certain perks to smaller companies going public, including relaxed financial reporting and accounting standards.
Several factors, including a sluggish economy, Facebook Inc.’s botched market debut and Washington’s fiscal uncertainty, have helped chill the climate for IPOs over the past year.