2021 was a very strong year for initial public offerings (IPOs) in the U.S. stock market, with more than 1,000 listings. Nearly 59% of these new listings were…
special purpose acquisition companies (SPACs), as the SPAC phenomenon was in full force. Additionally, nearly 73% of the new listings chose Nasdaq as their exchange, as tech stocks were strong and had momentum until the end of the year.
As we have entered the fifth month of 2022, things for IPOs look different compared to 2021. The global IPO market has witnessed a meaningful slowdown in Q1 2022 and important headwinds include geopolitical risk, inflation, and rising interest rates.
There are two main scenarios for upcoming IPOs in 2022. The first one is that some companies will delay their listing as they monitor the above challenges and risks. The second one is that some companies can decide to go public regardless of the negative sentiment in the U.S. stock market and in other global capital markets. The rationale is that going public marks a milestone achieved and new powerful ways to grow and pursue strategic goals. At the same time, the volatility of the capital markets should not be a scary thing, taking into consideration that like in stock trading and investing, finding the perfect timing is challenging and difficult to achieve.
These five hot upcoming IPOs are ones to have on your radar. Remember that history may or may not repeat itself in weak performance results for IPOs. These investments can be risky and are only suitable for investors with a tolerance for high volatility.
Hot Upcoming IPOs: Reddit
Reddit is a network of communities for people to share their passions and interests. It’s WallSteetBets community was behind many meme stocks rising to fame in 2021. Users can share links, posts, videos, and images and interact in active communities.
Reddit started its seed round for raising capital back in 2015 and as per the latest Series F funding back in Aug. 2021, it raised $410 million and had a pre-money valuation of $9.6 billion. Now that Twitter (NYSE:TWTR) is expected to go private later in 2022, Reddit seems like a good social media platform to fill the gap for publicly traded social media companies.
Discord is an app that offers free voice, video, and text chat for people to talk about their common interests. Users can create their own channels based on a topic of their choosing and can only provide access to other people by invitation. Although Discord is popular for video games, it has expanded to almost any topic, from sports to music communities.
Chime is a financial technology (fintech) company that wants to help its users manage their money easily. It offers a cost-benefit advantage on banking services with features like no monthly fees and a fee-free overdraft. Chime has partnerships with regional banks for…
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