December 18, 2019
Partner Kristine Di Bacco has told wire news network Reuters that some companies will balk at their IPOs plans after the news that OneConnect slashed its IPO by 28%.
The piece—which was also published in The New York Times, The Chronicle Herald and Gerente.com—discusses the OneConnect listing and explains the ramifications for its investor SoftBank, especially after WeWork’s failed listing.
It goes on to say “[s]everal other potential stock market listings have been pushed back since the collapse of WeWork’s planned launch in September and investment bankers are concerned that the trend may continue next year.”
Kristine said this news would cause other companies to reconsider their approach to IPOs.
“I think this (the recent turbulence in capital markets) will cause some companies to pause on IPO plans, especially those with weak unit economics and not a clear path to profitability—they will delay IPOs or start to pursue sale opportunities instead,” Kristine said.
“I think really good companies (Airbnb, for example) will not be deterred and will still plan to IPO.”
For more on our Emerging Companies and VC practice, see the relevant page.