High inflation and an unstable economy has affected the IPO market. Add to it a weak stock market, investors are cautious about betting on upcoming IPOs.
Among the top IPOs last year, Rivian, Robinhood Markets, and DiDi Global are all trading well below their debut prices. A volatile market has caused stocks to plummet to shocking new depths. In 2021, a total of 397 companies listed their shares via traditional initial public offerings, raising $142.4 billion collectively.
Upcoming IPOs of 2022:
Some of these top upcoming IPOs could offer investors a chance at high returns in the long run. Here are the top five companies set to make their public debut in 2022.
1. Discord
The communication app that can support chat, audio, video, and file sharing, Discord is gaining popularity among youngsters, especially gamers. Founded in 2015 by Jason Citron and Stan Vishnevskiy, the creators wanted to build a customer platform that will let gamers communicate efficiently while playing. Multiple platforms like Windows, Playstation, iOS, Android, Xbox, and others support Discord.
Analysts expect the application to add more servers and daily users. It generates revenue through premium subscriptions and even turned down a $10 billion acquisition by Microsoft in 2021. The company filed with the SEC and is one of the most watched upcoming IPOs but the volatile market has slowed its plans for a public offering. The company is valued at around $15 billion.
2. Databricks
The software company has witnessed over the last few years but has been quiet on the IPO front. Its current valuation supposedly stands around $38 billion but in case of an IPO it could cross $40 billion. The company helps firms manage data through artificial intelligence and machine learning.
As of late 2021, the company revealed that they had secured funding of $2.6 billion during Series G and H rounds. The company has earned praise for its top-notch technology and efficiency in managing data science and machine learning workloads. Its list of prominent investors includes Fidelity, Microsoft, Amazon, CapitalG, Salesforce Ventures, Tiger Global, Andreesen Horowitz, Blackrock, and New Enterprise Associates. It has maintained its impressive growth even during 2022, unlike most tech companies.
3. Mobileye BV
Mobileye sounds like an obscure name, but you would be delighted to know that it is an Intel-owned company that develops automatic driving technologies, advanced driver-assist systems, and different types of software. The company had initially gone public in 2014 before being bought out by Intel in 2017 for $15.3 billion.
Intel has previously mentioned that it will use funds raised from the Mobileye IPO to build more chip factories. In the filing, Mobileye CEO Amnon Shashua revealed that over 50 companies are currently using its technology in over 800 vehicle models. According to the prospectus, Intel will list Class A common stock while maintaining ownership of Class B shares. They are reportedly eyeing a valuation of around $30 billion, as it is one of the most promising amongst the upcoming IPOs of 2022.
4. Instacart
The online grocery delivery platform is supposed to debut in late 2022. In August, The Wall Street Journal reported Instacart’s revenue was up 39% to $621 million in the June quarter, the highest growth rate in the company’s history. In the same month, the delivery platform launched a new campaign to make it the one-stop-shop destination for online shoppers.
The company has also slashed its valuation thrice in 2022 in preparation for its public offering. In march Instacart CEO Fidji Simo admitted that she wants to attract investors who will understand and support the company’s long-term vision. One of the top upcoming IPOs, the online grocer recently offered superior tech to retailers to enable them to smoothen out their processes. According to The Information, the company has slashed its internal valuation to $13 billion ahead of the Instacart IPO.
5. Impossible Foods
The plant-based food company has been besieged with rumors of a public offering since April 2021. Its arch-rival Beyond Meats made its IPO debut in May 2019 at $240 million. However, after the initial euphoria, its stock price fell below to nearly half its public offering price. A recent report by Reuters mentioned that the company has engaged financial experts to better understand its valuation, as it fields interest from several SPACs.
Impossible Foods states that its mission is to provide a superior eating experience by using plants and technology.
Plant based foods have found a great market among millennials and Gen Z-ers as they make conscious, sustainable choices for the good of the planet.
There is no news about a possible Impossible Foods IPO date but experts are expecting it to list late 2022. Analysts predict that the Impossible Foods IPO would be worth as much as $10 billion or more.
