Updated: Feb 26
Amidst a pandemic stricken year, 2021 is first approaching, and going public has quickly made headlines in most board meetings. The bear market of 2020 poses a setback to the economy. A laundry list of new and old companies is looking to tapping into the famous Wall Street for more resources. The year's highlights include a B2B operator, ZoomInfo, boasting of up to $8.2 billion IPO. A shocker that awakened Warren Buffet's curiosity is Snowflake. It marked the highest digital valuation of about $33 billion. If you are new to initial public offerings, don't fret. Check out our IPO explainer below and get to know what IPOs are, investing strategies, the risks and rewards associated. In this round-up, we take a look at six blockbuster offerings anticipated for 2021 and the rest of 2020. They include:
So far, the history of IPOs on online gaming platforms has not been the best. Awful outcomes in most cases. However, Roblox is unique. It is an online gaming portfolio and also has its technology rooted in the game creation systems. With most of its users being children falling between the age of 9 and 13, Roblox thinks they can make a difference. With close to a million developers on their platform, it is easier to develop a user-friendly game with limited risks. It gives users unlimited experiences.
Statista depicts more than 30 million active users running across 180 countries in the past nine months alone. With an expectation of an $8 billion valuation and a recent filing, an IPO will hit the market in the first half of December 2020.
Various challenges and factors affect consumer behavior. Americans have re-designed and are now ordering and getting grocery deliveries from their favorite grocery stores through Instacart. An upscale demand for their services in mid-2020 forced them to add a team of employees to about 500,000. It led to an increased income of $225 million. As of now, Instacart's valuation stands at a whopping $18 billion. At an $18 billion valuation and with the SEC considering moving public, the necessary paperwork already exists. We should expect an IPO in the first half of 2021.
In collaboration with Goldman Sachs and Citigroup, the female embedded dating app is on scheduling an initial public offering in the first quarter of 2021.
Founded in 2014 is the Bumble app. It works by requiring women searching for a heterosexual match to make the first move. Besides dating, the app has become a household tool as it also offers professional and social networking.
Under the leadership of its founder and CEO, Whitney Wolfe Herd, the company is exploring options to expand. Among them are Asia, Central America, and the larger Europe. Bumble Company could seek an upscale valuation from $3 billion a year ago to $8 billion.
Founded in 2008, is Airbnb. Amidst the pandemic and its downside, Airbnb plans to go public this year as it already filed its IPO paperwork. However, thanks to the outstanding leadership skills of its CEO Brian Chesky, its shares will continue to grow tremendously over time. Halfway through 2020 was desolate for Airbnb. People use their platform to book and secure accommodations in over 220 countries. As opposed to previous years where people its booking services for summer vacations, 2020 was the bare minimum. With over 11 years in business, Airbnb lists 6 million rooms and counting houses and apartments in more than 81,000 cities in the world. For instance, in the US alone, New York has been the main battleground for the company having over 30,000 listings. The company's' stock valuation estimation rests at a whopping $30 billion. In relation to an earlier drop in the year, that valuation is an accomplishment.
As per a registration Form S-1 submitted to the US SEC by Petco, you can be sure to expect an initial public offering. However, they were not very forthcoming with the IPO filing as it took place confidentially. Even though the privately owned suppliers of pets recently pursued a buyout, the IPO may serve them well in achieving the $6 billion valuations they seek. It would provide its equity owners with a suitable return plan on their $4.6 billion earlier purchase back in 2016. The market has recently been favoring IPOs. Pet care has benefited from the panic buying of pets and challenges brought about by the pandemic. Petco's submission of an IPO is a clear indication that the US pet retailer is still in the battle for its share.
Founded in 2005 is the tech giant that helps companies automate recurrent tasks such as accounting and IT. In light of COVID-19 and subject to market conditions and timing, UiPath has hinted at going public in 2021. With a close to 400 million annual revenue, the New York-based software and the robotic company could project a valuation of up to $15 billion. All achievable through subscriptions and customer loyalty. Major profit margins were realized during the pandemic as most organizations resorted to engaging automated solutions. The need for automation is inevitable for optimal results in any growing market.
There is a strategic plan for expansion by securing potential funding and profits. It will lead to the widening of the company's technological outreach and an upgrade in engineering. The steady and stable revenue growth of UiPath has caught the attention of potential investors. It is safe to say that the shift to remote working has worked well for UiPath.
Bottom line, through IPOs, there is room for private companies to become public companies. It is achieved by selling ownerships shares or stocks to the public. Besides, advantages IPO also comes with a string of disadvantages for respective companies. The health of the economy is depicted by the volume of issued stocks present in the market. An increase illustrates the growth in the economy and vice versa.
What are some stocks you are eyeing in 2021?
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