The holiday season is shaping up to be a celebratory time for tech IPO investors. Between early and mid-December, public investors will likely get their first crack at buying stock in…
food delivery provider DoorDash, e-retailer Wish and kids gaming company Roblox, according to people familiar with the matter. Airbnb is also expected to file its prospectus by early next week, putting the home-sharing company in position to hold its market debut after Thanksgiving, said two of the people.
Filings are expected by next week, though the timing could change based on market conditions, said the people, who asked not to be named because their plans are private.
All four companies confidentially filed paperwork with the SEC this year, setting the stage for eventual public offerings. DoorDash announced its submission in February, followed by Airbnb and Wish in August and Roblox in October. Because the virtual roadshow has become commonplace during Covid, companies only need a couple weeks to meet with investors before their debuts.
Representatives from each of the companies declined to comment for this story.
Despite an economic crisis, tech IPOs are red hot, reflecting a sector that has outperformed the market in the face of a global pandemic, which has killed over 240,000 Americans, while investors also navigated the uncertainty of a presidential election. Stocks rallied after Joe Biden’s electoral defeat of President Donald Trump, giving tech companies that were surveying the market further incentive to go out now, said Kelly Rodriques, CEO of pre-IPO marketplace Forge.
The sector’s strong performance has persuaded all four companies to push forward with going public now, before conditions change. About a dozen other global tech companies could raise at least $1 billion in an offering that are preparing for 2021, according to a person familiar with the matter.
“There’s a bunch of pent-up demand,” Rodriques said. “A lot of people were waiting to see how the market would react in a Biden victory.” Rodriques said he’s not aware of any of the four companies’ plans.
During the pandemic, software, e-commerce and gaming companies have been among the biggest beneficiaries of a surge in spending on goods and services that cater to people who are home all day due to office and schools closures. Investors have poured money into stocks like Zoom for videoconferencing, Cloudflare for website security and Etsy for online retail.
An earlier IPO spurt in September included a share sale from cloud database vendor Snowflake, which raised a record amount of money for a software company. That was during the New York Stock Exchange’s busiest month on record. Gaming company Unity went public the same week as Snowflake, while…
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