Last year was the year of the initial public offering. Wall Street set records with both the number of IPOs that hit markets — more than 1,000 — and the total amount raised, which exceeded…
$300 billion and smashed the previous annual record by more than 50%. A horrendous start to the trading year makes 2022’s environment far more hostile to hot upcoming IPOs, but there are still a handful of elite privately owned companies primed for a debut on one of the major exchanges by year’s end. Here are 10 of the most anticipated upcoming IPOs to watch for in 2022.
Named by U.S. News as one of the top upcoming IPOs to watch in 2022 back in December, the popular social messaging app hasn’t yet confirmed a move to go public, but more and more signs are pointing to a move to tap public markets. In March, Bloomberg reported that Discord was interviewing investment bankers to prepare to go public, indicating that a formal announcement could be imminent. The company is reportedly considering a direct listing. Discord, which surged in popularity during the pandemic and enjoys a strong brand and cult-like user base, is a popular communication tool in the gaming and cryptocurrency communities. Confident in its ability to keep growing, Discord turned down a $12 billion buyout offer from Microsoft Corp. (ticker: MSFT) last year. In September, the company raised $500 million at a $15 billion valuation.
Potential 2022 IPO valuation: $15 billion
Popular social media and message board website Reddit filed confidentially for an IPO in late 2021, giving good indication that it would be one of the biggest upcoming IPOs in 2022. Reddit’s valuation has gone parabolic in recent years, with private financing rounds valuing the company at $3 billion in 2020 and $10 billion in 2021. Late-stage private investors always bet that an eventual IPO will bring substantial upside, and when Reddit picked Morgan Stanley (MS) and Goldman Sachs Group Inc. (GS) as lead underwriters for its initial public offering in January, Reddit was said to be seeking a public valuation of more than $15 billion. Given the rough start for tech stocks in 2022, it’s possible that Reddit and Discord will have to compromise on their ideal valuations, but time will tell.
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