Initial public offerings are often a hot topic among investors who envision getting in on the ground floor of “the next big thing.” And in many cases, IPOs do rip higher immediately after they start trading, particularly if they are for well-known, up-and-coming companies.
Although IPOs didn’t perform especially well in 2021, there’s a slate of hotly anticipated IPOs scheduled to come to market in 2022 that are generating a lot of buzz.
Instacart is an online grocery shopping service that hires personal shoppers to hand-pick store items and deliver them to customers who have ordered via Instacart’s website or mobile app. The company has partnered with more than 25,000 grocery stores and big-box retailers to provide this service.
Business boomed for Instacart during the height of the coronavirus pandemic, as customers were forced to stay at home and/or didn’t want to take on the risks of shopping in a pandemic. Instacart’s expected valuation is in the neighborhood of $30 billion, and it has chosen Goldman Sachs to bring the company to market sometime in 2022.
Impossible Foods is looking to come to market via an IPO or special purpose acquisition company (SPAC) sometime in 2022.
The competitor to Beyond Meat produces various plant-based foods that are meant to have the same texture and flavor of real meat. Its flagship product, the Impossible Burger, was launched in 2016 and has found its way into both grocery stores and restaurants.
Investors are no doubt hoping for a repeat of competitor Beyond Meat’s IPO, which rose more than 160% on its first day of trading. The company may seek a valuation as high as $10 billion.
Databricks offers a cloud-based platform for data engineering, data science, analytics and machine learning. The rapidly growing company may reach $1 billion in revenue in 2022, by some projections.
The company’s primary product is the Databricks Lakehouse Platform. The specifics of the platform are a bit high level. As described by the company, it delivers “data management and performance typically found in data warehouses with the low-cost, flexible object stores offered by data lakes.”
The company raised $1.6 billion in Series H funding in August, giving Databricks a $38 billion valuation.
Stripe is a financial technology company that processes payments for various e-commerce companies. The company sports a $95 billion valuation and reportedly pulled in $7.4 billion in revenue in 2020.
Stripe serves literally millions of companies in over 120 countries, including such well-known names as Amazon, Salesforce, Google, Shopify, Expedia and Microsoft.
Investors have been clamoring for a Stripe IPO; and, as of September, an IPO seemed likely in 2022. However, in November, Stripe co-founder John Collison said, “We’re very happy as a private company.”
Chime is a popular fintech company that offers basic online banking services, such as a spending account that comes with a debit card and a high-yield savings account. Chime also offers a Credit Builder Credit Card for those with poor or limited credit.
The Chime banking experience is designed primarily for mobile users, although web access is also available. The company is targeting March 2022 for an IPO, with an anticipated valuation between $35 billion and $45 billion.
Plaid is yet another financial technology company that seems likely to go public soon, and it’s one that many general banking customers are likely familiar with.
Plaid provides secure connections between customers and financial institutions, such as banks. Specifically, the company builds applications programming interfaces for the financial industry, and it’s also becoming an analytics company.
You might encounter plaid’s verification service if you’re trying to make deposits or transfers between one of your banking accounts and another institution. After raising $425 million in financing in April, the company was valued at about $13 billion.
Video game companies are hot, and there are few as popular as Fortnite, developed by Epic Games. The first-person shooter game is one of the 10 most popular games around the world, and it boasts over 350 million registered users.
As is the case with many online video games these days, Fortnite doesn’t cost any money to play, but the company earns from in-app purchases by gamers. Beyond Fortnite, Epic Games has a stable of over 50 games, along with the Unreal Engine, which is software used by other game developers.
In April, the company raised an additional $1 billion in financing, enough to value the company at about $29 billion.
More From GOBankingRates