Although stock in a company is available to people while it is private, the process of going public and offering the same chance to public investors is a large leap for any company. In fact, the initial public offering (IPO) can be vital for private investors to get the most out of their investment. It also allows public investors to finally get involved.
An IPO is a chance for private and public investors alike, and by keeping track of upcoming IPOs, you can avoid missing the opportunity to get in on a company with a bright future the moment it goes public. With the influx of investment from public sources, it can mean a lot for the company in question as well.
Unless you follow a lot of companies closely, you might not be aware of when they plan to go public, if they do at all. That is why it is important to keep your eyes open and track the plans of some of the more promising companies around. This article will pinpoint some of the upcoming IPOs you should be aware of for 2022.
General IPO Expectations for 2022
The past few years have been fantastic when it comes to IPOs, with many companies finding success when going to the public market. This year, 2022, is expected to see similar, if not greater, success, particularly in the world of tech and financial tech.
These expectations are due to tech growing so quickly, while new circumstances causing some companies to see meteoric rises, such as Instacart, one of the companies you will want to keep your eye on in the coming year.
Instacart
The founder of Instacart has some history, with a slew of start-ups failing before he found success with the grocery-delivery service. However, Instacart has quickly risen to prominence, especially over the past few years during the pandemic. In 2020, the company’s revenue tripled, elevating its valuation to $39 billion.
Although Instacart found its peak at the height of the pandemic, it did not go public previously. Instead, management changed, and Instacart started growth initiatives to expand and increase the services offered. However, there are a few reasons 2022 might see Instacart going public.
There are some questions about whether Instacart will be capable of living up to the current valuation as things settle in and places open back up. With some reopening already happening, it remains to be seen what will happen and whether they can still afford to wait. If nothing else, it is a reason to keep an eye on the company.
Stripe
Stripe is a big name in fintech, having grown massively since its founding in 2009 by the Collison brothers. The company deals with payment processing via its software and APIs for apps and websites. Stripe’s software can be integrated with websites and mobile apps, and it offers increased security and fraud detection.
There is more to Stripe than that, including data, invoicing, and many other pursuits. The expansive nature of the company is why it has risen to a valuation of more than $95 billion, a figure that makes it one of the most valuable private tech startups in the US. It also helps that their annual revenue exceeds $7 billion.
The interesting part about Stripe is that the founders are more than happy to keep it private at the present time. Despite that, it is one you want to keep an eye on, because you never know what will happen in the fast-paced world of tech.
Discord
There are few chat apps out there that can compete with Discord among the younger audience, especially gamers and people interested in cryptocurrency. It is a versatile platform, and with people looking for more ways to connect, it has seen rapid growth, more than doubling its user base during the pandemic and onward.
While its growth does not guarantee that there will be an IPO this year, there are plenty of reasons to think it might, such as the heavy public attention and nearly tripling of its revenue. In fact, many expect to see an IPO early in the year, so you definitely want to keep a close eye on this company.
Because of its prior round of funding, which raised around $500 million, Discord has received a valuation of $15 billion, positioning it for a strong opening.
Reddit is no stranger to stocks, having a large hand in launching meme stocks and elevating AMC Entertainments’ yearly gains. It even has a popular subreddit called WallStreetBets that centers around the discussion of stocks and trading. Therefore, it is only fitting that it should have its own stocks.
A Reddit IPO is not a pipedream, either, with the company revealing that it filed paperwork for a potential IPO at the end of 2021. At the time, Reddit received a valuation of around $10 billion, though there has been whispering about them aiming for a $15 billion valuation when they finally decide to go public.
There are many people interested in Reddit’s promising future since it has only continued to grow over the past few years. One question is how going public will impact the company and current community and practices. Regardless, with solid evidence about its future direction, there is good reason to keep an eye on Reddit.
Klarna
Fintech is one of the largest markets for growth in 2022, so it should come as no surprise that you need to pay attention to a few different companies in the same space. Klarna is one of the companies that deserve your attention, with the company taking a well-received approach of buy-now, pay-later service.
The company operates by allowing people to purchase something and pay it in four payments, which do not require you to pay any interest. However, the number of retailers they work with is what makes them stand out and raises their worth. Klarna has connections with over 250,000 retailers, helping push its valuation upward of $45 billion.
Klarna might not be that far away from an IPO, either. While the CEO has remarked that the current market makes him wary, there is a chance they decide to go public when an opportunity presents itself, making them a company to watch in 2022.
Databricks
Tech is huge, and Databricks is a powerful player in that world. The company deals with data science and artificial intelligence, and while they have multiple pursuits, their main product is their Unified Data Platform. It enables companies to import and compile data for business intelligence.
The use of AI technology is increasing rapidly, so businesses having access to a service that uses AI to optimize operations and keep them ahead of their competitors is a big deal. After all, data analytics has been a big part of business for a long time, and AI only makes it smarter.
Databricks is on the rise, as is the field they are embedded in. More importantly, they already expressed plans to go public in the latter half of 2020. While private funding in 2021 marked a delay in those plans, there is a chance an IPO will arrive sometime in the near future.
OpenSea
Crypto is a word you hear a lot these days, and while many online marketplaces are dealing with crypto goods, OpenSea is an up-and-coming company you need to keep an eye on. They deal with crypto-collectibles and non-fungible tokens (NFTs), providing a place for people to buy and sell digital art, domains, and tokens.
It does not seem like digital currencies or assets are going anywhere, so there is a lot of room for OpenSea to grow. They even have significant backing from big names in the crypto game, including Coinbase and Paradigm.
However, even if they do not see much growth in the immediate future, they are already worth quite a bit, with a valuation of over $13 billion. The world of crypto and digital assets is becoming bigger by the day, so you will definitely want to keep this company in your sights in 2022.
Chime
Chime is another company that lives in the fintech world that is seeing impressive growth. It is an online app that helps people manage their money, especially new generations. In fact, more than 8 million people have used the financial app, showcasing just how big it has become.
Chime is not to be confused with a bank, though. It is a financial tech company that operates using the bank services of other banks, such as Stride Bank. It works by providing a platform on desktops or mobile apps, and it makes money through fees when people use the provided debit card.
Although it might not sound like a big deal, Chime has a valuation of around $40 billion, and they have plans to go public early this year. Therefore, not only should you keep an eye on Chime, you should expect to hear news relatively soon.
Mobileye
This autonomous driving company was started in Israel by Amnon Shashua and Ziv Aviram in 1999, and it has grown into a major player in the world of tech. Part of its growth started when Intel acquired it four years ago, and since then, sales have tripled, bringing in a significant amount of revenue that exceeded $1 billion in 2021.
The technology is exciting, and there has been a push toward autonomous technology. However, Intel’s intention to take it public is the real reason it should be on your radar. Intel announced at the end of 2021 that it plans to take Mobileye public toward the middle of the year, meaning it might not be long before concrete news is announced.
When the time finally comes, expectations are quite high for Mobileye, with the company having an estimated valuation at more than $50 billion. It is another year that you can expect to be dominated by tech and tech-adjacent companies, and Mobileye is a part of it.
Impossible Foods
If you are not aware of Impossible Foods, it is a good time to learn about it. Founded by Patrick Brown, a professor at Stanford, it sells products that replace meat with various plant-based options. The growth of people looking for plant-based alternatives has caused rapid growth for the company, and its products have become common in stores.
However, Impossible Foods has a powerful rival, Beyond Meat, a publicly held company. Not only is Beyond Meat a direct competitor that reduces the desire for Impossible Foods products, but Beyond Meat has seen a large reduction in their price shares, which might indicate potential problems for Impossible Foods.
Impossible Foods is still a company to watch. They raised around $500 million in funding near the end of 2021, and they have a valuation hovering around $10 billion. The founder even spoke about how Impossible Foods going public would eventually happen, so make sure to keep an eye on it.
Epic Games
Anyone familiar with Fortnite will know about Epic Games. Even if you are unaware of what it is, the user base of 350 million registered users is a number that makes its popularity clear. And it is only one of the many games under Epic Games’ banner, which number over 50. It is not even limited to games.
However, while Epic Games has a software framework used by other developers, its main source of income comes from the games like Fortnite, many of which rely on in-game purchases while remaining free-to-play.
While the time frame for Epic Games becoming a publicly-traded company is unknown, it is one of those that will eventually go to market. Therefore, if you want a solid company to keep an eye on now and in the future, you can pay attention to this powerhouse gaming company.
Airtable
Cloud-based tools are incredibly popular in today’s market, so it should be no surprise that Airtable, a cloud-collaboration tool, has found a place within over 200,000 companies worldwide. In fact, while Airtable might not be a familiar name to everyone, it is used by companies like Shopify and Netflix.
The tool is meant to make it easier for teams of people to communicate, doing this through customizable tables and convenient features that allow platforms to build collaborative apps.
The only thing that might slow Airtable’s decision to go public is the large amount of money it made in funding over the past few years. Airtable does not need quick cash, so it can afford to remain private for the time being. However, with growth on the horizon and a valuation of around $11 billion, it deserves your attention in 2022.
Panera
Panera has some history with being publicly traded since it was once publicly held before going private in 2017. However, the company has announced plans to return to the open market, meaning the second IPO in its history might be right around the corner, potentially occurring as early as this year.
The company does not just control a restaurant chain, either. Panera also includes Einstein Bros. Bagels and Caribou Coffee, so the valuation is expected to be quite substantial.
Panera might not be a new face in the public market, but it has shown that it is able to stand the test of time. That, along with its intentions to go public in the near future, makes it one to keep an eye on in the coming year.
The Fresh Market
Just like Panera, The Fresh Market is a company that has seen the public eye before, being traded publicly before being taken private. The supermarket chain originally went public in 2010, then it was later taken over by Apollo Global Management in 2016 at the price of $1.36 billion. But that will probably change this year.
The Fresh Market has filed for an IPO, which is expected to occur in 2022. Moreover, it seeks to raise around $100 million to refinance and seemingly attempt to gain better conditions and flexibility before they go public.
While this supermarket chain might not be the largest IPO coming in 2022, it has a valuation of around $1 billion and has the potential to go far once taken public. Make sure to keep The Fresh Market in your sights as this year gets underway.
Lime
Lime takes renting to the next level by focusing on affordable transportation with a low carbon footprint. These modes of transportation include things like bikes and electric scooters, which customers can rent using the app. They even employ people to pick them up and charge them as needed before returning them to local LimeHubs.
While it might not sound as impressive as some of the other companies poised to go public, Lime has seen considerable growth, with a stable of over 200,000 bikes and scooters that are in a ton of cities. In fact, Lime entered around 80 new cities in 2021 alone, and with the increasing desire for electric vehicles, it is only heading upward.
It is interesting to note that Uber has the option to purchase Lime between now and 2024, so that is something to consider. However, as far as their valuation is concerned, it is expected to be anywhere from $1 billion to around $5 billion.
Final Thoughts
A company going public depends on a lot, so it can be hard to know when exactly it will happen, especially nowadays. However, the companies on this list are those that are worth looking out for this year. There are sure to be more out there as well. In particular, make sure you pay attention to tech and fintech companies throughout the year.
