Maxim Manturov, Head of Investment Research at Freedom Finance Europe, sheds light on the most exciting IPOs to monitor early this year.
2022 will undoubtedly witness a number of exciting and high-profile initial public offerings (IPOs) hitting the market. Following an important year of growth for many organisations, leaders across industries are looking to enhance their growth and expansion efforts by taking the business public.
In fact, the 2022 outlook for the booming IPO market looks particularly bright following a record-breaking 2021 and that does not seem to be slowing in pace. As seen in the EY Global IPO Trends report, global IPO volumes rose by 64% in 2021 and will continue to rise by 67% year on year.
With this in mind, let’s take at look a some of the most anticipated IPOs to watch out for in 2022. These include companies such as Stripe, Instacart, Databricks, and Discord, all of which offer a unique product offering that is high in demand and gives the business a substantial market value.
“Essentially, for those looking to capitalise on the ever-growing IPO craze, research into the fundamentals of a company is critical before choosing to invest”, explains Maxim Manturov, Head of Investment Research at Freedom Finance Europe.
Stripe is a digital payment platform for internet businesses. The platform lets you accept credit cards, debit cards, and mobile wallets around the world, and is currently being used in 120 different countries.
In December 2021, Stripe announced the launch of Stripe Treasury – a service that offers users APIs to embed financial services, allowing their customers to easily send, receive, and store funds. Stripe is therefore moving from a payment platform to a banking as a service (Baas) platform, which is already trusted by its existing users.
The company was last valued at $95 billion and, given its recent performance, is likely to have hit $100 billion by the end of 2021. For those looking to invest in some of this year’s most exciting IPOs, Stripe is most definitely one to watch as it continues to strengthen its position as a key player in the online payments space.
Instacart is one of the most popular grocery delivery and pick-up services in the US and Canada. The company has built a complex logistics system that includes agreements with more than 400 retailers covering more than 30,000 stores.
The network is available to around 85% of households in the US and 80% in Canada, and can be accessed via a website and mobile app. It is also important to note that customers can get fresh food delivered directly to their door in less than two hours.
Instacart was last valued at $39 billion and at IPO could be valued at $50 billion. Many expect its flotation to take place in early 2022.
Databricks is a data and AI startup that has developed software to quickly process big data and prepare it for analysis. The company has a client base of over 5000 customers, including high-profile clients such as CVS Health, Comcast, Condé Nast, and Nationwide.
The startup raised $1 billion in its latest funding round in early February 2021 and is currently valued at $28 billion. Databricks investors include Fidelity Management and Research, Whale Rock Capital Management, Amazon, Salesforce Ventures, Andreessen Horowitz, Capital G (Google), and Microsoft.
According to recent data, the company could be valued between $35 and $50 billion as its IPO launches. Investors must therefore ensure to keep the AI-driven giant on their radars.
Discord is a free text, audio, and video-chatting platform. Users communicate with one another through voice calls, video calls, and text messaging, as well as sending media and files through private chats.
As to be expected, the gamer-oriented app became extremely popular during the height of the pandemic, with thousands of users accessing the platform to communicate with friends and family whilst in lockdown.
In 2021, Microsoft wanted to buy the company for $10 billion, but Discord management rejected the deal. An official date for the Discord IPO is yet to be announced, but it is expected early this year.
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