With a bit over 170 IPOs in 2022, the U.S. stock market witnessed a whopping 81.8% decline compared to the year before.
Hopefully, the bear market subsides right in time for a few exciting upcoming IPOs in 2023. The highly anticipated list of IPOs includes Databricks, Stripe, and VinFast.
Here’s a list of 2023’s expected IPOs to keep an eye out for:
Databricks is a software company that enables data analysts as well as data engineers to collaborate in implementing artificial intelligence (AI) and managing databases.
With an estimated market value of around $38 billion, more than 40% of the companies listed on the Fortune 500 are using Databricks services.
The company says it now makes over $1 billion in annual revenue, turning it into a magnet for investors.
Since it’s all kept private, there isn’t much information about the date or expected share prices. All we know is that Databricks is definitely going for a direct listing.
Stripe is a huge company that offers a payment processing platform and financial solutions for various internet businesses.
There are over three million companies using Stripe for processing payments worldwide. Therefore, the company was initially valued at a bit under $100 billion.
However, the bear market had other plans as the company, like most other companies, went into a dive after the pandemic.
That’s because it’s directly dependent on other major companies’ revenues. Thus, since the stock market hasn’t been doing great lately, Stripe has cut down its valuation to $70 billion.
So, even if the stock market isn’t at its best right now, the company can’t keep holding off after the considerable venture capital (VC) funding it has received.
The company has yet to set a date for its upcoming IPO.
VinFast hopes to become a global electric vehicle (EV) producer based in Singapore. It’s a unit of Vingroup, which is the largest business conglomerate in Vietnam.
Amid the growing popularity of electric cars in the U.S., VinFast plans to use the IPO as a kickstart to open its factory there.
Initially, VinFast was hoping for a valuation of $60 billion when it planned to go public in 2022. However, that seems a bit far-fetched, especially with the falling EV stocks.
That said, the company is planning to go public pretty soon, probably in January 2023.
The social media giant, Reddit, has filed for an IPO in late 2021. However, the exact listing date remains unknown until now.
Considering the falling user numbers that Meta has witnessed this year, it may not be safe for another social media platform like Reddit to make this step.
After a recent funding round in August 2022, the company earned a $10 billion valuation. Reddit intends to go public with hopes for a $15 billion total valuation.
Instacart provides its clients with an online shopping experience and a delivery service. It had earned a sum of $1.8 billion by the end of 2021.
Initially, the company was optimistically aiming for a valuation of $50 billion. However, after the pandemic, Instacart’s valuation dropped substantially from $39 to $24 billion.
That said, the company is putting in efforts to go public in 2023.
The ups and downs of the stock market directly impact most companies’ decisions to go public.
All in all, we have Databricks, Stripe, VinFast, Reddit, and Instacart among the top candidates for upcoming IPOs in 2023.
With the hope of the bears going into hibernation, Wall Street bulls are clearing the decks.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions.
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