It’s quite clear that this year’s IPOs are lagging far behind those of 2022. According to industry experts, various reasons, including geopolitical tensions, may be delaying the IPO market. However, things will pick up as we inch closer to the second quarter of 2022. Industry Leaders has listed upcoming IPOS of 2022 – some of these names could be the biggest filer of the year.
The market has changed when compared to the previous year, and there are many investment options that come with IPOs of 2022. The year 2021 was the best year for IPOs so far, mainly because initial offerings reached around $594 billion, which is a new record. In 2021, more than 3000 companies went public and a collective valuation of these businesses was $2.7 trillion.
However, things have changed now when many conditions play an important role in the overall investment habits. There are many fluctuations in the market and the situation in the world is not secure. We have the Russia-Ukraine war, supply chain obstacles, shortage of commodities, and an energy crisis.
All these elements contribute to unstable markets and that is why business owners and investors need to examine each step when they invest and make business moves.
How does IPO news affect the investments?
The news in the world and many challenges in the market have led to the situation where people are not sure if they should invest in IPOs. We expect to see lower trading and this is something that concerns investors. The likelihood of IPO activity will be lower this year when compared to 2021.
However, we will see the activities that will change the overall market for the better. Below, you can see what companies have the biggest expected valuation and how you should invest in these upcoming IPOs of 2022.
1. Stripe IPO
The potential valuation of Stripe IPO is $95 billion. This is an Irish-American company that is led by two brothers and entrepreneurs, John and Patrick Collison. The company provides SaaS payment solutions for mobile applications and e-commerce websites.
The company had good standings in the pandemic years, and it continues to make progress. Stripe is partnering with Shopify Inc. and Apple Inc. when it comes to payment solutions. There is also a crypto universe where the company is developing financial solutions to make crypto trading smoother and easier.
2. Instacart IPO
The potential valuation of this upcoming IPO of the year is $39 billion. Instacart is a company from California and is a retail company that specializes in grocery retail and delivery services. It serves customers in the United States and Canada. There is a mobile application and a website where customers can order products from more than 700 retailers.
Instacart is a widely discussed IPO of 2022. The company has not officially filed for an IPO, but it may happen in 2022.
3. Databricks IPO
The potential valuation of Databricks is $38 billion. This is an American company that specializes in data engineering, and data science, and it operates as a data warehouse. The solutions of this company are adopted by more than 7000 companies around the globe and 40% of Fortune 500 companies use the services of Databricks.
The IPO is rumored to happen in 2022. This will be a huge step forward for the company that already has many investors and service users.
4. Discord IPO
Discord offers a digital platform that is used for communication, voice and video calls and private messaging. The company serves the channels where people can exchange information, communicate, and play. It is supported by iOS, Windows, PlayStation, and Xbox. As of 2021, the service has more than 150 million active users.
Discord is expected to go public by mid-2022.
5. Reddit IPO
Reddit is a company based in California and it offers a social platform where users can discuss many subjects. The community discusses politics, sports, finances, fitness, and many other subjects. The Reddit IPO is one of the most anticipated 2022 IPOs, and it has a valuation of $15 billion.
