Uber's botched IPO could prompt unicorns to go public sooner

Author: John Crabb | Published: 23 May 2019

Although lift-sharing company Uber's May 9 initial public offering (IPO) is likely to go down as one of the worst-performing in history, for any sector - not just for a tech unicorn with this much hype - it may yet have a positive impact on an already buoyant market.

Shares lost around eight percent in value on the first day of trading, with investors in the IPO losing hundreds of millions of dollars. Similarly, investors in market rival Lyft have lost as much as 35% since its offering in March.

Rather than being alarm, lawmakers and lawyers appear confident that these performances will have a positive impact on the US IPO market and, instead of spooking potential listers, will spur them on to go public sooner.

"It shouldn’t have any adverse effect on the IPO market or on the desire of companies to go public. Certainly in Silicon Valley this hasn't put...