Liftoff Mobile delays IPO amid tech stocks sell-off

• Liftoff said it will wait for market conditions that better support its long-term vision.
• The decision follows a brief rebound in US stocks after an AI-driven selloff, though uncertainty persists.
• The offering implied a valuation of as much as $5.17 billion.

Ad tech firm Liftoff Mobile has delayed its planned US IPO following last week's sell-off in tech stocks.

As reported by Reuters, investors were said to be pulling back from software companies over fears that new AI tools could shake up the market and hurt existing business models.

"Given current market conditions, we have made a business decision to take additional time before listing," said Liftoff Mobile. A spokesperson added: “We fully intend to pursue the public markets when timing and conditions best support our long-term vision." 

Last week, The Wall Street Journal reported that US stocks rebounded after an AI-driven selloff linked to Google’s Project Gemini, though investor caution persists over AI profitability and economic uncertainty.

Against this backdrop, Liftoff said it is postponing its IPO to await more favourable market conditions. It has not provided a new timeframe for when it plans to go public.

Roadshow and valuation plans

The delay also comes after Liftoff Mobile launched the roadshow for its proposed IPO with plans to offer 25.4 million shares at an expected price range of $26 to $30, targeting proceeds of up to $762m and a valuation of $5.17bn.

The IPO is being led by Goldman Sachs, Jefferies, and Morgan Stanley. Liftoff provides performance marketing tools for mobile app developers. It reported 40% growth in core advertising revenue and 1.4bn daily active users. 

Formed from the 2021 Liftoff-Vungle merger, the company later secured a minority investment from General Atlantic at a $4.3bn valuation.