The 2018 class of initial public offerings (IPOs) looksespecially vulnerable to the impact of an extended governmentshutdown, thanks to an arcane rule requiring recent listings towait for regulatory approval before raising cash in a follow-onoffering.
President Donald Trump told reporters on Wednesday thatCongressional Republicans are unified behind continuing theshutdown, which he previously warned could last for months, or evenyears. While the shutdown prevents companies from moving forwardwith new IPOs, those that have already listed face their own set ofchallenges.
“The dynamic for follow-on offerings might be even moreproblematic than for delayed IPOs,” says Dave Sabow, head ofSilicon Valley Bank's life science and healthcare practice.
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