The 'Great IPO Reopening' may be on hold: rising rates and weaker stocks are a killer

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Cash-strapped unicorns have three choices: raise additional capital in the private markets, merge or be bought out; move into the public markets.

hit $31.30 when it opened on Thursday, barely above its initial price of $30, before closing at almost $34.was the first IPO to get everyone excited, way back in June. It priced at $22, opened at $42, and went to $55 shortly after. It's now at $30, still above its initial price the victim of massive selling the past two weeks.

The bad news: these early companies are the strong ones, and their mediocre reception, even with tiny floats, does not bode well for the hundreds of tech IPO hopefuls, most of whom are not profitable and would still like to avoid taking the massive haircuts that would be necessary to successfully float them in the public markets.

Tarhuni noted that venture capital firms still have dry powder, but that they will be focusing on helping the companies with the highest probability of success. In this environment, that means companies that are already turning an operating profit.

 

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