$1 billion video conferencing startup Zoom has picked banks but is sitting in SEC purgatory ahead of a planned IPO

The $1 billion video conferencing company Zoom is in the process of filing confidentially for an IPO with the Securities and Exchange Commission but its registration is stuck due to the government shutdown, according to a source familiar with the company's plans.

While Zoom has submitted paperwork with the SEC, the compay still isn't officially filed because of a processing delay, the source added.

The startup has picked banks for a public offering that include Morgan Stanley, JPMorgan, Goldman Sachs and Credit Suisse, the source said.

Representatives for Zoom and the banks declined to comment.

Reuters previously reported that Zoom was preparing for an IPO with Morgan Stanley last October.

Zoom was founded in 2011 by CEO Eric S. Yuan, who was previously VP of engineering at the video conferencing company WebEx. Yuan joined Cisco in 2007 when it bought WebEx for $3.2 billion.

Zoom, which sells subscriptions for enterprise-grade video conference services, is used by companies including Uber and Box. Morgan Stanley also uses Zoom's video conferencing technology, which played a role in the company's decision to appoint the bank as its lead underwriter, the source said.

The company is cash flow positive, the source said. It was last valued at $1 billion in a Series D led by Sequoia Capital in 2017. The company is also backed by Facebook and Qualcomm.

Zoom is just one of a handful of tech unicorns awaiting feedback or confirmation from the SEC following the federal government shutdown. The ride-hailing competitors Uber and Lyft reportedly had not gotten comments from the SEC as of January 9, despite filing confidentially in early December, ahead of the shutdown.