The Initial Public Offering (IPO) market has sprung back to action after going through a rough patch in 2020 with many hot upcoming IPO 2021 which are waiting to hit the market. Many IPOs are in the pipeline with a large number of companies keen on ‘going public’ by floating new shares for business growth and expansion.
With digital transformation casting its net far and wide, many technology companies have penetrated the IPO market to raise capital for building cloud infrastructure, analytics platforms, and Artificial Intelligence(AI) based technologies. The IPO list is likely to expand further with the addition of directly listed companies and Special Purpose Vehicles.
Thus, the IPO momentum is unlikely to decrease in the near term.
Now let us discuss some exciting upcoming IPOs to watch out for in 2021.
Upcoming IPO 2021
One of the biggest IPOs expected to hit the US markets in 2021 is that of financial services firm Robinhood which aims at offering financial products for all social classes.
Incorporated in 2013 amidst intense competition among online brokerage firms, Robinhood faced immense skepticism from experts on its survival chances in an overly crowded industry.
However, its relentless focus on innovation led to its steady growth. It was a pioneer in introducing zero-commission stock trades and zero balance cash accounts. This unique feature of commission-less trading attracted a large number of tech-savvy millennials to this fledgling firm. It is also one of the few players in the cryptocurrency market.
As of date, its Apple IOS friendly app has 13 million users with a surge in user registrations in mid-2020 – a period during which most businesses experienced a downslide due to the global pandemic.
With a competitive advantage in the ‘young investor’ market, this firm is here to stay and make huge profits in the future.
Valuated at $11.7 billion in September 2020, Robinhood is definitely one of the hottest IPOs to look out for in 2021.
One of the top gainers of 2020, the global pandemic proved a blessing in disguise for this online grocery chain. With a robust logistics network, agreements with approximately 400 retailers, and 30000 physical stores, Instacart is currently ranked third behind Amazon and Walmart.
Founded by a former Amazon tech worker, Instacart hires a lot of middlemen/shoppers who deliver groceries at your doorstep as per the grocery list you ordered online. With the global pandemic confining businesses and people to their homes, the Instacart delivery app registered a massive surge in the number of users in 2020.
The company’s valuation touched a whopping $17 billion in October 2020 – a phenomenal rise from its valuation figure of $7.9 billion in January 2020 after raising $225 million and $200 million from the market in June and October 2020 respectively.
The company is slated to expand its operations further and go for the third round of fundraising in the early part of 2021. Thus, this is one of the most attractive and anticipated IPOs of 2021.
As the largest exchange for cryptocurrencies in the US, Coinbase is expected to thrust the IPO market somewhere in February 2021. The company has already registered for an IPO and this IPO is estimated to be worth more than $8 billion.
Coinbase is an interesting IPO to watch out for as cryptocurrencies like Bitcoin are gaining traction across the globe amongst both retail and institutional investors. Unfavorable global fiscal policies and traditional currencies plagued with exchange rate and interest rate risks indicate a bullish trend for cryptocurrencies.
With a continually expanding investor base of over 35 million in 100 countries, this custodian of digital tokens is making huge profits as per industry buzz. The IPO registration implies its expansion plans too thereby making it one of the most awaited IPO deals of 2021.
As mentioned earlier, many tech firms follow the IPO route to raise capital. One such firm is ThoughtSpot. It is a business intelligence firm that harnesses the power of cloud computing, analytics, and AI-based technologies for growth. Their core focus is providing Analytics-based insights easily accessible and available for all.
Headquartered in Sunnyvale, California, Thoughtspot has offices all over the globe. In September 2020, this firm introduced ThoughSpot Cloud – a SaaS platform using AI-based analytics to integrate data from sources like Amazon Redshift, Snowflakes, etc, and enable customers to discover valuable insights from a single virtual cloud platform. It is useful for those who cannot install and manage their own software. With a majority of its customers already on virtual private clouds. The company harbors a positive sentiment towards the demand for this new service.
The company also follows a customized sales approach for firms of different sizes. With acceleration in supply chain movement, firms are now in dire need of dashboards that move equally fast. Therefore, ThoughSpot’s AI-driven cloud services are likely to witness an increase in demand and sales in the future.
Moreover, the company is clear about its expansion plans and wishes to hit the IPO market somewhere in Fall 2021. Thus, this is definitely an IPO deal you should keep an eye on.
Unlike the typical social media firms that focus on connecting people across the globe. Nextdoor is a unique social media site that familiarizes you with your neighborhood. You can now easily make connections across the street through Nextdoor.
Launched by Silicon Valley entrepreneurs. This firm currently covers 1/4th of the US households. It operates out of 11 countries covering approximately 3 lakh neighborhoods. This site has been useful not only in building social networks but also in professional networks. You can market your products on this site, recommend your friends/neighbors for a job, and even organize events in your locality. Easy access to localized news/ads is another unique feature of this site.
This social media innovation has immense growth potential. Therefore, this is an IPO deal worth waiting for in 2021. The company is expected to raise an IPO with a valuation of $4-$5 billion.
Digital payments are gaining popularity by leaps and bounds. The advent of the internet and online transactions has led to hard physical money taking a backseat to digital money and cashless deliveries.
Stripe is a fintech firm that focuses on encashing this popularity. It builds economic tools and technology infrastructure for companies of all sizes to accept digital transactions on their respective apps and sites.
Dual headquartered in San Francisco and Dublin, this firm serves both startups and branded firms. Currently valued at $35 billion, this firm is expected to be a fierce competitor for established digital payment companies like PayPal and Square in the near future.
With growing volumes of online shopping, there is a strong buzz that Stripe is likely to raise funds through an IPO in 2021. While the exact IPO timelines are unknown, this revenue-centric data cum payments platform business model has immense growth potential. So this may be one of the best IPOs for you to earn a high rate of return.
This online gaming company serving the niche market of kids in the age group of 9-12 years is recently in news for delaying its IPO that was scheduled in December 2020 and opting for direct listing instead.
Raising capital through direct listing is easier as companies do not have to complete the underwriting formalities of a typical IPO. Roblox also claims that it has raised $520 million through venture capital and private financing. But, it plans to raise an additional $30 million through a direct listing. The company is all set to submit a direct listing proposal to SEC thereby confirming that an impending IPO is underway.
Things To Know
While you may be in a dilemma to trade in new shares of Roblox as some gaming companies have had negative experiences in the recent past, Roblox is in a slightly different league. It is an online gaming cum creation platform. There are currently over 10 lakh developers on its site who have created close to 18 million seamless gaming experiences.
In addition, imposed lockdowns all over the world due to the global pandemic led to a massive surge in the number of daily active users. As of date, Roblox boasts of 32 million daily active users from around 180 countries.
With a total of 23 billion hours of gaming activity registered on its site in the last 9 months, this $29.5 billion company has generated 68% higher revenues in 2020. In addition, its own digital currency Robux has led to a surge in virtual purchases of its products.
With such impressive revenue and profit figures, you can be bullish on its future growth prospects too. Thus, this is one of the best upcoming IPO 2021 deals that you must surely explore.
Bumble is a social networking app that helps you find love, friendship, and professional networks on a single platform.
Bumble date is their dating app that is steadily challenging the market leader Tinder. A unique feature of this app is that only women can make the first move in heterosexual matches. Bumble takes every precaution to protect the privacy and security of all users. It Bizz is akin to Linkedin and the BFF mode of the app allows you to make new friendships and maintain existing ones.
Bumble has registered more than 100 million users in 2020 with user registrations increasing on a daily basis. As per industry reports, Bumble has already filed for an IPO and is planning to float new shares somewhere in February 2021. As per estimates, the IPO valuation is likely to be in the range of $6 – $8 billion.
With virtual dating gaining a lot of momentum, Bumble’s growth prospects look bright. So this is an awesome upcoming IPO 2021 that you must consider.
This is yet another tech firm gearing up for an IPO in the first quarter of 2021. This firm has already filed all the confidential documents with the SEC to enter Wall Street.
UIPath is one of the few players in the nascent Robotic Process Automation (RPA) market – a subset of AI. Headquartered in New York, the firm enjoys a strong position in the RPA market. It is actively engaged in building robots that observe your workflows/keystrokes. while interacting with a system/application and automate iterative tasks to decrease run time and increase productivity.
UIPath earned a revenue of $400 million-plus, irrespective of economies taking a hit worldwide due to the global pandemic. The firm is currently valued at $10.2 billion and has successfully raised $255 million in the past from big angel investors. The company is ambitious and has a positive outlook on the demand for its services. It is speculating an IPO worth $15 billion plus.
With an increasing number of companies on the anvil of digital transformation, process automation is the key to increase staff productivity and customer satisfaction. Demand for RPA has increased manifold with remote work models becoming the need of the hour.
Thus, this is one of the upcoming IPO 2021 that has the potential to give you a high Return on Investment (ROI).
This is a coveted firm in the cybersecurity space that makes use of AI and cloud computing to prevent your systems, applications, SaaS, IoT, and even emails from an impending cyber attack.
Based out of San Francisco and London, Darktrace is a market leader in providing cyber safety. It is a pioneer of the Enterprise Immune System – an AI-based technology that can detect all types of system hacks and espionage activities at lightning speed.
This fast-growing firm is planning a huge $5.16 billion float in the London markets in 2021. It is reported to have already partnered with a syndicate of investment banks for the IPO underwriting process.
A company with a good brand image and global presence is bankable for investing and earning high returns. Therefore, this is definitely one of the best upcoming IPO 2021 that you must closely monitor.
While most of you may not consider investing in a pet retailer’s IPO profitable as compared to that of tech firms, Petco is one of the upcoming IPO 2021 in the USA that can give you substantial gains if you are willing to give it a shot.
Firstly, this is not the first time Petco is going public. It has pulled off this feat thrice before. So the IPO in 2021 will be its 4th outing in the IPO market. So you can expect it to be a smooth and efficient process.
What To Know?
Secondly, Petco has footprints in approximately 1500 locations across the US. It has been able to survive for a long time in the market. Since its inception in 1965 irrespective of facing competitive pressures from big giants like Amazon and rival firms like Chewy.
Thirdly, Petco is now rebranding itself as a health and wellness company for pets. Their rebranding exercise includes stacking more healthy items for your pets, providing veterinary check-ups at their stores, and offering membership plans for complete care of your pets.
Last but not the least, the year 2020 proved to be a game-changer for them as they were able to reduce their net losses by 77%. They wish to raise capital up to $800 million and list their shares on Nasdaq. Currently, their estimated IPO valuation stands at $6 billion and they may float new shares in February 2021.
Considering the above factors, the growth potential for Petco looks promising. So this is an upcoming IPO 2021 worth exploring.
So, these are some of the hottest upcoming IPO 2021. The IPO boom will also mark the debut of a lot more firms on Wall Street in 2021. So be ready to grab the best opportunities for investing.
For more finance-related concepts you can have a look at the FinanceShed, and stay tuned for more updates.