The slowdown in the IPO market at the end of 2021 left companies that were expected to jump into the hot market in the cold, but many are expected to test water in 2022.
According to David Ethridge, PwC’s US IPO service leader, tech companies dominated the initial public offering market in 2021. And as companies stay private for longer, there remains a deep backlog of mature tech companies that may only make their debut a year later.
Among the most promising candidates in the tech arena are social networking platform Reddit, grocery delivery service Instacart, and data analytics company Databricks. And, following what Rainmaker Securities’ managing director Greg Martin called the “Fintech Banner Year” deal, this year it recorded a $ 95 billion private market valuation, but so far resisted the public market. More attention will be paid to the Stripe you are doing.
Here are some notable points between Technology and FinTech IPOs, and in the years that follow:
Did you miss the gig IPO party?
Instacart was in the middle of a pandemic as the blockade increased the number of people trying to deliver groceries. However, it is different from fellow gig economy player DoorDash Inc.
Launched in December 2020, Instacart has postponed its IPO and instead is working on a new growth initiative through several management changes.
Facebook CEO Fidji Simo
Veterans have been in command since the summer, and Instacart could approach its debut, perhaps in the second half of 2022. New CEOs typically need to lead the company for nine months to a year before starting an IPO. For MKM partner analyst Rohit Kulkarni, Instacart in particular may need a few more quarters “to overcome the headwinds of all these resumptions.”
The company The final value is $ 39 billion In a private funding round in March 2021. One of the key questions is whether a company can respond to an IPO that takes place closer to the post-pandemic period.
“It’s hard to reproduce what they did in 2020,” Martin said. His platform, Rainmaker Securities, allows private companies to trade pre-IPO stocks. “The evaluation may be a little advanced.”
An Instacart spokeswoman declined to comment on the company’s IPO ambitions.
The ultimate WallStreetBet
Reddit has helped launch meme shares, but now the company is approaching its own shareholding.Bulletin board company in December Submit confidential documents With the Securities and Exchange Commission for a potential IPO later Worth about $ 10 billion In the August funding round.
Reddit is probably best known in the investment community for WallStreetBets’s “subreddit”. In this forum, users discuss other topics related to stock selection and trading. The company makes money through ads and paid membership tiers that allow users to browse apps and access other perks without ads.
As a private company, Reddit is a fellow social media company, Twitter Inc. Has avoided some of the scrutiny by.
Facebook’s parent, Meta Platforms Inc., has faced their role in disseminating false information online. By publishing, Reddit can further spotlight its practices and policies.
The company is reportedly expected to generate $ 350 million in revenue this year. According to the information, At least twice the total for 2020.
Reddit may not be the only social platform to test the public market in 2022. Martin points out that there was strong secondary market demand for Discord on his platform, suggesting that the company is a “monitoring” company in a year. come.
“We have nothing to say at this point,” a Discord spokeswoman said in response to a MarketWatch inquiry about a potential IPO plan.
Year of stripes?
Amazon.com Inc.Can be compared to
And Shopify Inc.
Similar to Square-parent Block Inc.
The company offers features such as payment processing technology, billing tools and business finance.
But with a private market valuation of nearly $ 100 billion, Stripe continues to test the boundaries of how hot tech companies can avoid the public market. Will 2022 finally be the year that FinTech giants plunge?
IPO watchers are divided depending on whether Stripe debuts. Given the company’s secrets about its potential IPO ambitions, Stripe executives seem happy to run their business as a private company, Kulkarni said. He would have been “surprised” to see Stripe coming out a year later.
Martin, a shareholder of Stripe, is more bright about opportunities. Stripe was able to provide liquidity to investors and easily raise new capital, so “the company feels very tightly controlled by its founders and they don’t need to be open to the public.” He said. Still, he expects the company to enter the IPO market in 2022.
Stripe isn’t the only rumored IPO candidate to get the attention. Martin admitted that Stripe would actually be a “senticorn” deal, given the company’s valuation of about $ 100 billion, and a year later it would be “five or five” in the fintech space. He said it could result in six large “unicorn” IPOs.
Swedish fintech company Klarna is one of the most anticipated names, especially from its postpaid rival Affirm Holdings Inc.
Was one of the greatest successes in the 2021 IPO market. Like Affirm, Klarna lets consumers split their purchases in installments.The company was worth $ 46 billion Through the June funding round..
Buy now and pay later: Afterpay, Klarna, Affirm, and rivals want to dominate the United States
Renaissance Capital data analyst Avery Spear said that although it is based in Europe, Clarna could be a more splash if it chooses to make its debut on the US exchange. Doing so would unlock the “larger pool of capital,” she continued.
A Klarna spokeswoman said the company did not comment on its IPO plan, “this is a problem that only the CEO can talk about.”
Other possibilities include Revolut and Chime, a personally rated Neobank $ 33 billion When $ 25 billion, Each. They follow Nu Holdings Inc.
A Brazilian company that operates Nubank. Published in early December..
A spokesperson for Revolut said the company is “focused on achieving sustainable profitability,” and the IPO has not been considered or discussed at this time. Chime declined to comment on the IPO’s ambitions.
Martin is also looking at the plaid. Received $ 13.4 billion in private market valuation in April After a transaction with Visa Inc.
It was canceled. The company has people payPal Holdings Inc. their bank accounts. Make it easy to link to services such as Venmo. Brex, which offers credit cards and other financial products to businesses, is also cracking the watchlist.The company secured a funding round in October We valued it as $ 12.3 billion, According to TechCrunch.
Plaid declined to comment on the IPO plan. A Brex spokeswoman said he had no comments on the company’s plans.
“Fintech companies will undoubtedly dominate 2022,” Martin said.
The reception on Wall Street is by no means chilly, and another trendy cloud company may be trying to achieve a similar fate.
Databricks, which helps businesses process and analyze data, was “a long-awaited IPO,” Kulkarni said, with the potential to finally make a leap into the open market in 2022.
A Databricks spokeswoman said there were no more comments than the company had already publicly stated. CEO Ali Ghodsi said he hopes the company will eventually be released “in the not too distant future.” When talking to CNBC in December..
reference: 5 things you need to know about snowflakes
Other software names on Kulkarni’s watchlist include Tanium and Canva. By providing cybersecurity services, Tanium “is operating in a very attractive end market,” he said. Based in Australia, Canva creates design software that challenges Adobe Inc’s products.
Elsewhere, social media management firm Hootsuite may be aiming for an IPO, according to Santosh Rao, head of research at Manhattan Venture Partners. The Canadian company was founded in 2008 but doesn’t seem to be profitable yet. Given the current market attitude, it can be a problem.
“Even the big guys are being punished for not showing profit for a long time,” Lao said. The company was reportedly aiming for an IPO in Canada “before Christmas.” According to Betakit, A publication covering Canadian startups. That offer never came true.
Fanatics recently signed a deal to replace Topps as a manufacturer of trading cards for Major League Baseball, and sports companies may soon head to the Big League. MLB deals have shaken the industry a lot, and two major card makers, Topps and Panini, have both shelved their own IPO plans after Topps won the baseball business.
With a final value of $ 18 billion in August, the company recently scooped up its former IAC / InterActive Corp.
Chief Financial Officer Glenn Schiffman plays the same role in Fanatics. This may indicate that the company has an IPO ambition.
Schiffman works with a variety of online brands at IAC, and his Fanatics corporate career states: “As the company expands beyond commerce into new areas of the entire sports ecosystem and becomes the world’s leading digital sports platform. , Promote the financial direction of the company. “
“IPOs are clearly an option we have, but there are no timeline updates,” a Fanatics spokeswoman told MarketWatch. “Our focus is on expanding our business over the next decade or more and building a major digital sports platform, so the public offering is only a moment.”
There is nothing impossible
According to Martin, Impossible Foods once looked like an IPO candidate in early 2022, but he sees secondary market demand for plant-based meat makers as chilling. Published rival Beyond Meat Inc.
In 2021, stock prices will almost halve, which could affect sentiment towards Impossible.
society, Raised about $ 500 million In the November funding round, there are still names to watch, especially if Beyond Meat shares are no longer endorsed on Wall Street or if the company’s financial position looks better than Beyond’s.impossible Former FinTech executive hired as Permanent Chief Financial Officer in August, This could indicate an effort to prepare a book on Wall Street.
Private equity is released
A likely bet on an IPO in 2022 is TPG Partners LLC, a private equity firm that has already submitted a prospectus to the SEC. The roster of a significant number of the company’s 23 underwriting banks suggests that TPG may move towards larger services. Probably collecting over $ 1 billion..
Expected IPO in 2022: Reddit, Instacart, etc. could hit Wall Street
http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-77FB-FCB2226C3245%7D&siteid=rss&rss=1 Expected IPO in 2022: Reddit, Instacart, etc. could hit Wall Street