2021 was a record-breaking year for initial public offerings (IPOs) in terms of listings and volumes. Some of the big names that went public last year were Coinbase, Rivian, Bumble, Roblox GitLab and more. 2022 is already predicted to be another big year in the IPO market, with major companies already filing to go public and others rumoured to. Note that even when a company is close to going public, it can still decide to cancel it.
Keep reading to find out some of the highly anticipated IPOs of 2022 (in no particular order).
In the past two years, Reddit has made headlines as its message boards, particularly WallStreetBets, have played a role in popularising so-called meme stocks, such as GameStop and AMC. Reddit is a platform that has a massive collection of forums where users can view and share text posts, links, images and more.
Reddit is currently working with Morgan Stanley and Goldman Sachs for its IPO, which could be as soon as March. In its last round of funding last summer, the company was valued at $10 billion and could be valued at as much as $15 billion in its IPO.
Update: On 21/01/21, WeRock NV cancelled its IPO, citing market volatility. It was not stated whether the company will proceed with the IPO at a later stage.
In early January, WeRock NV, which owns the file-sharing platform WeTransfer, announced that it would be seeking an IPO on Euronext Amsterdam. WeRock NV offers productivity tools that combine a software-as-a-service (SaaS) solution with a premium advertising business, including WeTransfer, Collect, Paper, Paste and WeTransfer Advertising. As of September 2021, WeRock NV reports having a user base of 87 million monthly active users.
Upon WeRock NV’s IPO, it will be renamed The Creative Productivity Group. The company intends to raise €160 million in new shares and a secondary offering of existing shares owned by some current shareholders. A date has not been set for the IPO at the time of writing.
Instacart is an American grocery delivery and pick-up service. Instacart has become increasingly popular amid the pandemic as more consumers adopted app-based delivery services.
The company initially had plans to go public but decided to push its stock market debut off to 2022 (or possibly beyond) to strengthen its services beyond food delivery. In March 2021, a round of funding valued Instacart at $39 billion.
Chime Financial Inc. is a fintech company that provides banking services that challenge traditional banks. Chime does not charge any monthly service fees, overdraft fees or require minimum balance requirements. Instead, Chime makes money by taking a portion of the transaction fees its partner Visa charges merchants when customers use its Chime debit card.
In its last round of fundraising in August 2021, Chime raised $750 million, valuing it at $25 billion. While nothing is confirmed, some say that Chime is aiming to go public in March.
Another big fintech company that could go public this year is payments platform Stripe. When a customer makes a payment online, Stripe processes the payments with its software Stripe Payments. Stripe makes the majority of its money for the fees it charges to process these payments. Stripe provides its services globally, with major companies such as Amazon, Booking.com and Deliveroo using its services.
In March 2021, Stripe raised around $600 million in funding, giving a $95 billion valuation. Reuters reported in July 2021 that Stripe had hired lawyers to help with preparations for an IPO. However, in November 2021, its co-founder said Stripe is ‘very happy as a private company’. Time will tell if Stripe ends up hitting the market in 2022.
Discord is a web-based communication app initially built for gamers and now used for all sorts of communities. Discord is free to use, but it also offers subscriptions. Discord rose in popularity during the pandemic as people were stuck at home playing video games and connecting online.
In March 2021, Microsoft was in discussions with Discord to acquire the company for $10 billion. However, in April 2021, Discord rejected Microsoft’s bid of $12 million and was said to be focusing on going public on its own. As of September 2021, Discord was valued at $15 billion. Although a date has not been set yet, many think Discord will aim to go public sometime in 2022.
Beyond Meat competitor Impossible Foods could be another big name to go public this year. Impossible Foods has several plant-based meat alternatives in their product line, such as the Impossible Burger, Impossible Sausage and Impossible Chicken Nuggets. Impossible products are available in restaurants, such as Burger King with its Impossible whopper, and in grocery stores in several countries around the world.
Impossible Foods is estimated to be worth $7 billion. It is not clear exactly when Impossible Foods will go public but CEO Pat Brown said in November 2021 that an IPO is ‘inevitable’.
Databricks is a data analytics platform founded by the creators of Apache Spark, an open-source system used to manage big data. Databricks has been a driver of the so-called ‘data lakehouse’. A data lakehouse combines data ‘lakes’, large amounts of raw data, with data ‘warehouses’, structures that process the data. Databricks operates in 12 countries and provides services to over 5,000 organisations, including ABN AMRO, H&M Group and Shell.
Databricks has not filed IPO documents yet, but there are talks that the company will go public in 2022. In August 2021, the company raised $1.6 million at a $38 billion valuation.
Klarna is a Swedish fintech company that offers buy now, pay later (BNPL) services. BNPL is a type of short-term financing arrangement that allows consumers to make a purchase and pay for it in installments. You can read more about BNPL here. Klarna reports having 90 million active users worldwide, with 250,000 merchants using its services.
In June 2021, Klarna raised $639 million, valuing it at $45.6 billion. This makes Klarna the highest-valued private fintech in Europe and the fourth worldwide (according to CB Insights). CEO Sebastian Siemiatkowski said last year that Klarna was not currently working on an IPO but may consider one as early as 2022.
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The information in this article is not written for advisory purposes, nor does it intend to recommend any investments. Please be aware that facts may have changed since the article was originally written. Investing involves risks. You can lose (a part of) your deposit. We advise you to only invest in financial products that match your knowledge and experience.
Sources: Bloomberg, Forbes, Motley Fool, Investopedia, Reuters, Chime, Stripe, Databricks, S&P Global, CB Insights, WeTransfer