Many private firms have been reluctant to go public via an IPOs because of the expected bear market in 2022. An increase in interest rates is the Fed’s short-term remedy for inflation in the stock market.
Some of the most high-profile companies have been unable to go public because of a terrible stock market start, which has closed the IPO window. Companies are ready to go public if the market improves, which some analysts believe could happen later this year.
List of New IPOs To Watch
According to Barron, there were more than 1,000 IPOs in 2021, making it a record-breaking year for IPOs. Entriprises made more than $315 billion as a group.
Barron estimates this year’s IPOs raised $168.7 billion, more than double the amount raised in 2020. However, the outlook for IPOs in 2022 has already been dim due to the unfavorable state of the market.
Since the volatility of the market, the uncertainty in inflation, and conflict in Ukraine have all contributed to the dread of recession, IPOs have been substantially decreased,” says financial adviser and Bridgeriver Advisors founder Dan Casey in Bloomfield Hills, MI.
Companies are now reluctant to raise money from investors, as the value of their businesses has been lowered owing to the current economic climate.
However, despite a notable slowdown in the number of firms making their public debuts, the Securities and Exchange Commission continues to approve their plans.
Mobileye
No, because the firm is already publicly traded. Yes, on the face of it. That happened when Mobileye, a maker of sophisticated driving assistance systems, went public in 2014 before being purchased by Intel in 2017.
Intel hopes to reap the benefits of Mobileye’s rapid growth by re-listing the asset on the stock market. There has been a lot of interest in the IPO market in automotive systems and electric cars, and Mobileye has allegedly set a $50 billion value.
VinFast
VietFast, a Vietnamese electric car manufacturer, is hoping to take advantage of the astronomically high interest among investors in businesses like Tesla and Rivian.
By the end of the year, VinFast hopes to begin shipping SUVs to the United States, Canada, and Europe.
According to Bloomberg, the company also intends to construct a facility in the United States by 2024. The corporation has sought an electric vehicle’s value of between $25 billion to $60 billion.
Regarding finding like-minded people to converse with online, Reddit is sometimes referred to as the “first page of the Internet.”
It was in 2021 when Reddit exploded into public attention since it was the trading hub for the stock traders that pushed GameStop stock to new heights.
In August 2021, Reddit received more than $400 million in financing from Fidelity Investments at a $10 billion value.
Instacart
One firm that seemed to grow throughout the global epidemic was Instacart, the app that delivers groceries and other things to your doorstep. Consumers stayed at home and ordered takeout instead of going out to eat.
With the help of major venture capital companies like Andreesen Horowitz, Instacart concluded a fundraising round valued at $39 billion in March 2021. Instacart may go public in 2022 after years of speculation.
However, in May 2022, the company’s worth was lowered by nearly 40% as the market sank.
Stripe
Stripe, an e-commerce payment processor, has likewise rode the pandemic wave of increased online purchasing.
However, Stripe has also made forays into lending and tax management. Andreessen Horowitz, Kleiner Perkins, and Sequoia Capital are just a few of the big venture capitalists who back Stripe.
The firm was valued at $95 billion in a $600 million investment round in March 2021, making it the most valuable independent fintech company.
There have been rumors about this high-profile firm going public for a long, but the corporation has previously stated that it is not in a hurry. We’ll have to wait and see how things turn out.
Discord
Discord, a chat program with audio and video calling capabilities, is certainly familiar to gamers. This app is, in essence, what Slack or Microsoft Teams are to the business sector.
By 2021, CNBC estimates monthly active Discord users will have risen to 150 million. There was a rumor that a $10 billion acquisition offer from Microsoft in 2021, but there was no agreement. In September 2021, the business valued at $15 billion in a financing deal.
ServiceTitan
ServiceTitan gives home service providers, such as plumbers and electricians, a method to manage their companies using software tailored to their specific needs.
Payroll, work scheduling, marketing, and other functions are all included in ServiceTitan’s package.
There was a $9.5 billion valuation for the company in its last financing round in June 2021, with sponsors like Tiger Global and Sequoia Capital on board. The corporation is aiming for a valuation twice as high as the most recent one.
Airtable
It is a cloud-based collaboration program that resembles a spreadsheet but also has the capabilities of a database. The program allows non-coders to provide their clientele with a simplified digital experience. The expected date of Airtable’s initial public offering (IPO) is at the end of 2022.
Airtable came into markets in 2012 by Howie Liu, Andrew Ofstad, and Emmett Nicholas in San Francisco, California. Some Fortune 500 firms are among the 300,000+ organizations that use Airtable’s software, including Netflix, Inc. and Shopify, Inc.
After raising $735 million in a Series F investment round on December 13th, 2021, Airtable saw its value soar to $11 billion. This year’s valuation is double what it was at the start of 2021. In this fundraising round, Salesforce Ventures, Benchmark, and Coatue Management were only some of the well-known investors.
Conclusion
An increase in initial public offerings occurs when the market is buoyant, and corporations are eager to take advantage of the increased liquidity to increase their stock’s value.
There’s no way the IPO market will start until the larger market does, and the financial markets have shown no indications of recovery. Indeed, investors are speculating about the possibility of an economic downturn, which would further stifle the IPO market.
