2021 was the biggest IPO year ever – globally IPO’s raised $608bn. The Global IPO markets have delivered 2,682 IPOs raising $608bn, including 459 IPOs in EMEA raising $99bn according to EY. The largest IPO globally in 2021 was the $13.7bn IPO of the American electric vehicle automaker Rivian Automotive, the electric vehicle maker is backed by Amazon and Ford. Other well-known IPO’s in 2021 are for example Bumble and Coinbase.
Already at the end of Q3-2021 Factset predicted that 2021 would be the most successful and biggest IPO year ever.
“Year to date (YTD), 2021 has already set new records. Through the third quarter, 785 companies have IPO’d on U.S. exchanges this year, well ahead of 2020’s 555 offerings for the full year. This year’s YTD volume is the highest number seen in FactSet’s annual data history going back to 1995; the previous high was 664 IPOs in 1996.”
Source: Factset
The US continued to be the dominant region. The EMEA region saw the highest relative year-on-year growth (367%), whilst the Asia-Pacific growth was modest.
So, what’s next? Not many companies have officially confirmed their IPOs yet, but here are ten IPOs to watch in 2022.
Stripe
Stripe primarily offers payment processing software and payments as a service. Revenue hit an estimated $7.4 billion in 2021, up 70% from 2020. In January 2022, Stripe entered a five-year partnership with Ford Motor Company; through this deal, Stripe will handle transactions for consumer vehicle orders and reservations. Stripe also partners with Spotify to help creators monetize subscriptions, accept payments and launch recurring revenue streams (memberships). Stripe has a valuation of $95 billion in 2021 and analysts are betting on an IPO in 2022.
Discord
Founded in 2015 and headquartered in San Francisco, it operates an online voice, video, and text communication platform. This chat app is a favorite of gamers, cryptocurrency users, and the NFT-world. Discord, which still has to reveal its IPO plans, has a potential IPO valuation of more than $15 billion and has 150 million monthly active users.
Klarna
Klarna was founded in 2005 by three Swedish business partners with the ambition to simplify online payments for consumers and retailers. Klarna is a fintech and well-known due to the service ‘buy now, pay later’ purchase options for customers. Klarna operates in 17 countries and has 90 million active customers, including 20 million customers in the U.S. In June 2021, Klarna announced it had raised $639 million in a funding round. This results in a post-funding valuation of about $45.6 billion. The fintech company has announced intentions to go public, but no date set yet.
Chime
Founded in 2013 and headquartered in San Francisco, it is a fintech company that helps users to avoid bank fees, as well as save money automatically. This digital bank offers its users a savings account, a Chime debit card, a mobile app, and a current account. Similiar digital banks / Fintechs are N26 and Revolut but they don’t have a US focus.
Chime is expected to go public at a valuation of up to $45 billion, all the preparatory work has already been done. The exact date of the offering is still open.
Reddit was founded in 2005 and is headquartered in San Francisco, it allows users to submit links, create content, as well as discuss the topics of interest. Reddit has become popular due to its discussion communities and the meme stock hype (AMC, Gamestop) discussion @wallstreetbets. Reddit, with approximately 52 million daily active users, has an indicated $15 billion valuation.
The list of potential IPO’s will grow during the year. Here are some other potential IPO’s for 2022 are:
- ByteDance (Tik Tok)
- Databricks
- Instacart
- Nextdoor
- Vantage Towers
- Starlink
- Impossible Foods
So, how to get the IPO stocks of these top companies? Currently, Freedom24 is the only broker in the EU that provides the opportunity to invest in IPOs (in addition to more than a million trading instruments like stocks, bonds, ETFs, etc).
The full list of the upcoming IPOs (along with the past offerings performance) is presented here: Freedom24/IPO
Here are the results of the best 2021 IPOs (stocks price growth after a 93-days lock-up period).
- Upstart – 475% (lock-up ended 18.03.2021)
- BioAtla – 293% (lock-up ended 18.03.2021)
- Doximity – 231% (lock-up ended 27.09.2021)
- D-local – 224% (lock-up ended 09.09.2021)
- Verve – 215% (lock-up ended 20.09.2021)
Of course, it should be considered that not all of the IPOs become successful for investors.