The window for technology companies to list their shares is closing. Falling stocks have depressed valuations and made investors pickier about new listings, Reuters reports. Private firms will have to reluctantly consider Plan B.
Many tech startups had hoped last year’s record year for initial public offerings would persist in 2022. January’s selloff has changed the mood. Expectations of higher interest rates hurt highly valued companies, while disappointing results from Meta Platforms, Spotify Technology and PayPal added to the gloom.
Plan B could involve waiting out the storm, knocking on venture capital doors, finding a buyer or doing a SPAC deal.
Whatever option the IPO hopefuls choose, according to Reuters a valuation discount looks hard to avoid. Read more.
