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Brexit Volatility Could Derail Hopes Of A Renewed IPO Market

Brexit Volatility Could Derail Hopes Of A Renewed IPO Market

Twilio Inc (NYSE: TWLO)'s stock hit a new all-time high of $41.89 Thursday morning (before profit taking sent the stock lower by more than 3 percent on the day) just a week after the company priced its IPO at $15 per share.

Investors and traders hoping to duplicate Twilio's IPO run with the next hot listing might be disappointed as the post-Brexit carnage will likely put a hold on new listings.

Gus Tai, a venture capitalist who has been involved in taking several companies public in the past told Yahoo! Finance's Seana Smith that a slowdown in new listings is to be expected as "Brexit has had a negative impact on the IPO market."

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Tai continued that any type of market volatility makes it "difficult" to underwrite a new IPO. Specifically, the large investment banks that underwrite the IPO "have some degree of concern" to the price of the IPO.

"It's simply the underwriters telling them to hold or delay when they go on their roadshow," he said.

Meanwhile, 2016 has proven to be a disappointing year for new issues. Yahoo! Finance cited research from Renaissance Capital, which said only 41 companies made their public debut this year, down 59 percent compared to the same period a year ago.

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