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The Top 10 upcoming IPOs

Published by: Stephen Masters
May 5, 2022 3:28 pm

IPOs have received some impressive valuations lately, and we have quite a few companies that are slated to go public this year. Let’s take a look at the most anticipated IPOs to come. 

#10 Better.com

Valuation ~$7.7 billion

Expected IPO in Mid-2022

Facilitating home financing has been a good business, with low rates and technology used to cut out mortgage brokers. The mortgage search facilitator Better.com is coming to market via a special purpose acquisition company (SPAC) deal with nearly an $8 billion valuation. As rates and prices of homes increase, the buying may slow, and this company could be under threat if the housing market falls.

#9 Impossible Foods

Valuation ~$10 billion 

Expected IPO in Mid-2022

Makers of the Impossible plant-based burgers seen in Burger King and White Castle, and other plant-based meat replacement foods, Impossible, is trying to change our eating habits and reduce the climate impact of the food industry. Significant growth in the “meat replacement” space is likely in the coming years.

#8 Plaid

Valuation ~$13 billion

Expected IPO in Mid-2022

If you try to connect different bank accounts or them to your investment account or budgeting app, you will probably use Plaid. According to reports, this lucrative business has seen its revenue grow to $170 million, a 60% YOY pop. With further financial digitization, Plaid is well-positioned to take full advantage. 

#7 Reddit

Valuation ~$13 billion

Expected IPO in early 2022

The information-sharing site is likely to IPO soon. After an August 2021 capital raise of $400 million, its valuation rose to $10 billion. Its community of various interests is expected to push the price higher. 

#6 Discord

Valuation ~$17 billion

Expected IPO in late 2022

Microsoft was considering buying the chat start-up for $10 billion, but these talks ended, and in September 2021, Discord raised another $600 million, raising its valuation to $17 billion. Though there are no formal IPO plans, investors and its 140 million monthly users would love to see Discord go public. 

#5 Databricks

Valuation ~$38 billion

Expected IPO in Mid-2022

The use of data has become more critical in nearly every industry to get knowledge about customers and that edge over the competition. Databricks provides tools for database management, AI implementation, and data visualization services. They state that their 5,000 clients are in 19 nations, and they will generate over $1 billion in revenue, which will be up 75% over 2021. 

#4 Instacart

Valuation ~$39 billion

Expected IPO in late 2022

The online grocery delivery company has been a hot IPO rumour for over a year. At the end of 2021, Instacart stated it would focus on business building. Its early 2021 funding round saw a valuation of $39 billion, but then Instacart proactively moved this down to $24 billion. Instacart was a beneficiary of the Covid-19 pandemic, as all but essential workers stayed home and were ordered in. Instacart wishes to diversify its offering to gain back waning interest in stay-at-home stocks. 

#3 Chime

Valuation ~$40 billion

Expected IPO in second half-2022

Online bank Chime also grew during the pandemic, and in September 2020, the CEO said it would IPO within a year. They reportedly brought on Goldman Sachs to lead the IPO. The last funding round in August 2021 led to a $25 billion valuation, but Chime will probably go for more. Care is warranted as finance is a very competitive business; if we go back into a recession, the IPO timing could not be worse. 

#2 Klarna

Valuation ~$46-50 billion

Expected IPO in 2022

Swedish fintech Klarna is entering the US as the buy now pay later leader, and with its recent capital raise of $640 million, its valuation sits at nearly $50 billion. Klarna serves consumers’ demand to finance purchases of all sizes with set monthly payments. Klarna saw record 2020 revenues, with at-home shoppers eagerly buying. If the buying trend continues with buyers paying this way, then Klarna will be a company to watch.

#1 Stripe

Valuation ~$95 billion

Expected IPO in 2022

Stripe has done very well, and the demand for digital commerce has also been a win for them. In its last 2021 funding round, it raised $600 million of its total $2.2 billion from 39 investors, making its valuation from the last round equal $95 billion. If it IPOs for that price, it will be one of the largest ever. Any funds raised will go toward new services like cash management and small business loans to expand the online payment processing at its heart. Like many other potential IPOs, Stripe grew greatly through the pandemic, but it continues to do so. 

Valuations are based on previous funding rounds or from company projections.

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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