With a few listings and even fewer successes, the IPO market calendar in 2022 was desolate and terrible. The bear market garnered muted interest in any new public offerings in 2023. But the narrative is slowly girdling upwards – with flagship companies like Stripe, J&J’s Kenvue IPO, and SpaceX renewing investors’ receptivity to seek the upcoming IPOs of 2023.
The US initial public offering market dwelled 23 IPOs through mid-March, which is 27.8 percent higher than that of the same period in 2022.
There were only 1671 IPOs globally in 2022 raising $180 billion, which was less than half of the IPOs in 2021 which raised $627 billion. Mere 80 companies went public in what investors are terming ‘the worst year for US IPOs since 1990’, amid a negative increscent investor sentiment.
While many private companies are postponing their IPO commitments awaiting the ease of the bear market, with a few exciting IPOs to watch in 2023, the market might be buttressing again. The total proceeds for the upcoming stock market launches are thriving at $2.2 billion – a 5 percent boost from 2022’s Q1.
Lately, some tailwinds are forming for the companies which have resolved to go public this year, with a few firmly planning for an imminent listing. But, which are the upcoming IPOs of 2023 with the highest growth potential?
Best IPO Stocks In 2023: IPOs To Watch Out For
The upcoming IPOs of 2023 embody dynamic potential, but companies that raise an IPO may need funds to stabilize their business or for dizzy expansions. IPO stocks can be risky during the first two years of the company going public. Here are a few of the Top IPOs to invest in 2023.
The Archetypal
Stripe Inc
Market Cap: $50 billion
Potential IPO Valuation: $55 billion
With a market share of 23.8 percent in the payment-management market, online payments processor Stripe’s IPO is expected to debut one of the biggest IPOs in the history of new public offerings, in the latter half of 2023. Stripe’s projected valuation of $50 billion was rumored to go public in 2021 and has become the most anticipated listing in the tech industry. On the cusp of a $4 billion boost in capital, many speculate the company’s need for capital, facing a huge IRS tax bill.
Like other fintech companies, Stripe layoffs in the second half of 2022 furloughed 1,000 employees and slashed its internal valuation by 28 percent. Founded in 2010 by Patrick Collison and John Collison, Stripe has $14.4 billion in revenue.
Arm Holdings Ltd.
Market Cap: $76.61 billion
Potential IPO Valuation: $50 billion
Owned by Japanese company SoftBank Group Corp, the British semiconductor company is on the move to raise $8 billion from the ARM IPO in 2023. With a solid track record of innovating nearly 3,000 granted or pending patents, Arm Holdings has adjusted its royalty program to charge developers for deploying designs based on the chip’s market value. Transforming the pricing model prior to Arm’s IPO, the microchip designer charges chip customers on the value of the chip-enhanced devices.
Databricks
Market Cap: $31 billion
Potential IPO Valuation: $38 billion
The Databricks IPO is a tipping point for the largest data infrastructure company in the big analytics and artificial intelligence space. 40 percent of Fortune 500 companies, such as Conde Nast, Shell, H&M, etc harnessed Databricks’ cloud computing analytics. In 2023, the company announced Dolly, which functions like OpenAI’s ChatGPT even after being developed using fewer than 3 percent of data points.
“We’re not going to be facing the pressures that come with being public.”
Despite lowering internal valuation from $38 billion to $31 billion in October, CEO Ali Ghodsi announced that the company will not lay off employees, but instead would hire more, recently surpassing $1 billion in annual revenue.
The Mavens
Chime Financial Inc.
Market Cap: $369.28 million
Potential IPO Valuation: $25 billion
As the broader spectrum of fintech stocks plummeted more than 70 percent in 2022, Silicon Valley raised aggressive valuations in 2020 and 2021, but now has to trim costs and prioritize sustainable growth. Chime announced to delay its IPO to the latter half of 2023 in February, as the hard-hit Fintech IPOs find stable ground.
Chime is gearing up to swiftly sustain the current global banking uncertainty and move forward with the IPO by the end of 2023.
Discord Inc.
Market Cap: NA
Potential IPO Valuation: $15 billion
Discord has been rumored to go public for a long time. The tech company’s streaming services and communications app are gaining steady steam as a popular instant messaging chat app among the younger, video gaming generation. The company already raised $1 billion recently and turned down a $12 billion buyout deal from Microsoft. With 150 million active monthly users and a profitable monthly streaming service, Discord’s IPO is the talk of the town.
Reddit Inc.
Market Cap: N/A
Potential IPO Valuation: $10 billion
Social media giant Reddit was angling to go public in March 2022, but it did not materialize. Reddit’s market share in the native advertising domain is 65 percent, certainly owing to its loyal user base of 57 million active users with over 1.2 billion total users. With a downbeat 2022, Reddit received the green light as one of the upcoming stock market launches of 2023. The company has filed the IPO privately and will roll out the wheels publicly, soon, either with the SEC or NASDAQ.
