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Uber/Lyft Markets

Government Shutdown Delays IPOs

Add the government shutdown to the obstacles facing tech companies planning to go public this year. As if the stock market’s intense volatility of the past few weeks weren’t enough, the shutdown has disrupted operations at the Securities and Exchange Commission, which has to review IPO prospectuses. According to the Wall Street Journal, several companies have delayed their IPO plans, such as biotech firm Gossamer Bio Inc.

Companies such as Lyft and Uber had already filed IPO paperwork confidentially but according to a Bloomberg report Wednesday, neither company has got feedback from the SEC. The Bloomberg report cited sources saying the companies believe their IPOs could be delayed by the government shutdown. 

There’s no end in sight to the shutdown. President Trump reportedly walked out of a meeting with congressional leaders on the issue Wednesday, claiming it was a waste of time. Even if the shutdown is resolved, market conditions could remain tricky. 

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