Source: Business Insider
Top tech bankers are grappling with a risk factor that wasn’t even on their radar just two months ago: the global spread of coronavirus. When it comes to deals, sharp share price moves are complicating negotiations. And for IPOs, two options are emerging — make a go at it before things potentially worsen, or hold off entirely. Morgan Stanley’s head of global technology M&A said the situation is making buyers and sellers take a “stop, look, and listen mentality.” Speaking about investor appetite and timing for IPOs, one banker said: “If you’re really desperate to go, you might have to take a buck or two lower – but maybe it’s better to go now.” DoorDash revealed last week that it has confidentially filed paperwork to go public , though gave no guidance on next steps. A DoorDash representative declined to comment on the company’s timeline. Other expected 2020 tech IPOs include Asana, which last month filed to go public via a direct listing, and GitLab, whose CEO told Business Insider last year he’s also eyeing a direct listing, but not until November.