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8 of the most-anticipated IPOs analysts say to watch for in 2022

Posted by sayam

February 3, 2022

The number of companies going public has skyrocketed over the last two years. According to analysts, the frenzy of IPO activity is underpinned by stratospheric company valuations in the U.S. stock market, helped along by low interest rates and pandemic relief funds.

But as the IPO market began slowing down at the end of 2021, many companies that had been expected to jump on the hot market were left out in the cold. But some of these companies are expected to keep gaining market value and to go IPO this year.

Here is a look at eight of the biggest potential IPOs of 2022:

  1. Impossible Foods

In 2011, Stanford professor Patrick Brown founded vegan-friendly Impossible Foods, which replaces meat products with plant-based options. Its products are sold in more than 20,000 stores across the globe. Impossible Foods raised about $1.5 billion in private funding to date and is extremely likely to go public this year. The company, which raised roughly $500 million in a November financing round, currently has a valuation of $7 billion .

  1. Reddit

Reddit is an American social news aggregation, web content rating and discussion website where registered members can submit or comment on the content of their choice, which is then voted up or down by other members. On December 15, 2021, Reddit confidentially filed paperwork to go public this year, but the firm has disclosed no financial details so far. The company was valued at $10 billion after an August funding round. 

  1. Discord

Although the online chat service has yet to make an official announcement, investors have been eyeing a Discord IPO since Microsoft attempted to acquire it for $10 billion, but the deal fell through in April 2021. The company reports it has 150 million active monthly users and raised $500 million in September 2021 at a valuation of $15 billion.

  1. Chime

San Francisco-based digital bank Chime was reportedly expected to enter talks to go public in the first quarter of 2022. However, the firm has yet to make an official statement about an IPO. Founded by Chris Britt and Ryan King, Chime has a valuation of $35 billion to $45 billion, which is higher than many regional banks in the U.S.

  1. Instacart

Online grocery ordering company Instacart has been working with Goldman Sachs to go public through a direct listing, reportedly in early 2022. The grocery delivery giant is responsible for a whopping three-quarters of third-party intermediary grocery sales in the U.S. Instacart was valued at $39 billion after a private funding round in March 2021. 

  1. Databricks

In August 2021, software company Databricks raised $1.6 billion in a funding round to reach a valuation of $38 billion. Databricks is the first platform that allows users to perform SQL analytics and business intelligence, with data science and machine learning on the same platform. Databricks hasn't filed to go public yet, but its long-anticipated IPO may finally happen in 2022. 

  1. Klarna

The fintech company Klarna, a buy-now-pay later platform, was valued at $46 billion after a June 2021 funding round. The company believes that its growth in users and revenue amid the pandemic will translate into a successful listing. Klarna works with over 250,000 retail partners and reports it has 20 million customers, and is said to be taking a calculated approach to a public offering.

  1. Stripe

In April 2021, Stripe became the most valuable venture-backed private company in the world, with a valuation of $95 billion after its series H funding round. For every $100B in transaction value, Stripe now processes nearly $3B, adding its own transaction fee. The financial services startup provides payment-processing technology, invoicing tools and business financing, among other features. Stripe is the most anticipated upcoming IPOs to watch for 2022. It has engaged a law firm to evaluate early steps to go public, according to Reuters.

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sayam
sayam

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