As a financial analyst with years of experience in the market, I have seen how the Initial Public Offering (IPO) market has grown over the years. IPOs are a great way for companies to raise capital and expand their business. As an investor, IPOs provide an opportunity to invest in a company at an early stage and potentially benefit from its growth. In this article, I will be discussing the top 8 IPOs to watch in 2023, their background and history, financial performance and projections, industry analysis and market potential, key risks and challenges, expert opinions and predictions, and how to invest in an IPO.
Read also: From IPO to Success: Companies That Their IPO in 2013 and How Are Thriving Today.
Introduction to IPOs and why they matter
An IPO is the first time a company offers its shares to the public for purchase. This is an important milestone for any company as it allows them to raise capital from a wider range of investors. IPOs matter because they provide investors with access to new investment opportunities and the potential for high returns. Additionally, IPOs can be an indicator of the health of the economy and the overall market. A successful IPO can signify investor confidence in the market and the economy.
What to look for in an IPO
Before investing in an IPO, it is important to do your due diligence and research the company thoroughly. Some key factors to consider include the company’s financial performance, management team, industry trends, and potential risks and challenges. It is also important to consider the company’s valuation and whether it is reasonable based on its financials and market potential.
Top 8 IPOs to Watch in 2023
Some of the most recommended forthcoming IPOs to watch for in 2023 are:
- Stripe
- Databricks
- Instacart
- Discord
- Chime Financial
- ARM Holding
- SpaceX
These companies have generated significant attention and have the potential to attract significant investment due to their innovative products and services. Investors will be closely watching the performance of these companies leading up to their IPOs and their financial results post-IPO. It’s worth noting that investing in IPOs can be risky, and investors should carefully evaluate each company before making any investment decisions. [1][2]
References:
[1] 7 Hot IPOs To Watch In 2023 [2] Latest & Upcoming IPOs — 2023 Calendar [3] 10 Best Upcoming IPOs to Watch in 2023 | InvestingStripe
Stripe is a payment processing company that has seen significant growth in recent years. The company has a strong presence in the e-commerce and fintech industries and plans to go public in 2023. Stripe has a solid financial track record and potential for further growth in the expanding digital payments market.
Databricks
IPO date was not confirmed at that time, and there is no update on whether the company has plans to go public in 2023. Additionally, the post-IPO valuation of the company is uncertain [2].
References:
[1] Will Databricks go IPO in 2023? [2] Databricks IPO: What to know about Databricks [3] Databricks Stock: Prepare to Invest in the IPOAccording to recent reports from [1][2], Reddit is planning to launch an IPO in the second half of 2023. The company first filed regulatory paperwork for an IPO in the fall of 2021. Initially, Reddit filed for an IPO in December 2021, but it was later postponed. However, the company has now decided to go public later this year, likely in the second half [2]. The decision to go public makes sense as the stock market has seen double-digit returns, and corporate earnings have been up [3].
References:
[1] Will The Reddit IPO Finally Happen Later In 2023? [2] Reddit aims for IPO in second half of 2023 – The Information [3] Reddit’s Rocky Road to a 2023 IPOInstacart
Instacart is a grocery delivery service that has seen a surge in demand during the COVID-19 pandemic. The company plans to go public in 2023 and has potential for further growth in the expanding online grocery market. However, the company faces competition from established players like Amazon and Walmart.
Discord
According to [1] and [2], Discord is one of the most anticipated possible IPOs for 2023, with a current valuation of $15 billion. While the date for the IPO has not yet been announced, [2] suggests that it looks likely that Discord will be listed on either the NYSE or Nasdaq in H2 2022 or early 2023. However, it’s worth noting that Discord has not yet filed IPO paperwork with the SEC, and an IPO was expected in early 2022 but didn’t happen, as mentioned in [3].
References:
[1] Is 2023 The Year For A $15 Billion Valuation Discord IPO? [2] Discord IPO: Everything you need to know about Discord [3] How to Buy Discord Stock in 2023Chime Financial
It is unclear whether Chime Financial will have an IPO in 2023. While the company was originally planning to go public in March 2022 with a valuation between $35 and $45 billion [3], the IPO was postponed to the second half of 2022 [3]. As of now, there is no news about whether the IPO will be further delayed or if it will happen in 2023. However, Chime is still considered one of the top IPO candidates in the digital banking industry [1], and the IPO community expects Chime to eventually go public [2].
References:
[1] Fintech firms may struggle to find investor love in … [2] 10 Best Upcoming IPOs to Watch in 2023 [3] Chime IPO: Date, Stock Price & Complete ReviewARM Holding
Arm Holdings is expected to go public later in 2023, as mentioned in [2]. The company is likely to aim to raise at least $8 billion from the IPO, which is expected to be a blockbuster launch in the US stock market, as mentioned in [1]. The valuation of Arm Holdings could be close to $40 billion as a public company, according to [3]. However, it’s worth noting that the company has not yet filed IPO paperwork with the SEC, and the plans could change based on market conditions and other factors.
References:
[1] Softbank-owned Arm seeks to raise prices ahead of U.S. IPO [2] Arm IPO: SoftBank’s chipmaker will reportedly go public … [3] SoftBank Plans Arm Holdings IPO in 2023SpaceX
SpaceX is a private space exploration company founded by Elon Musk in 2002. The company has already successfully launched multiple rockets and has contracts with NASA and other organizations. The company plans to use the funds raised from the IPO to finance its Mars colonization plans. While the company has a lot of potential, it also faces significant risks in the highly competitive and capital-intensive space industry.
Company background and history
Each of these companies has a unique background and history that is worth exploring before investing in their IPOs. For example, SpaceX was founded by Elon Musk with the goal of making space exploration more accessible and affordable. Robinhood was founded with the goal of democratizing finance and making investing accessible to everyone. Understanding the company’s mission and values can give investors a better sense of their long-term potential.
Financial performance and projections
When evaluating an IPO, it is important to consider the company’s financial performance and projections. This includes metrics like revenue, profit margins, and growth rates. For example, Stripe has seen significant revenue growth in recent years and has a solid financial track record. Understanding a company’s financials can give investors a better sense of their potential for long-term growth and profitability.
Industry analysis and market potential
It is also important to consider the industry and market potential of the company. This includes factors like market size, competition, and industry trends. For example, the electric vehicle market has seen significant growth in recent years and is expected to continue to grow in the future. Understanding the industry trends and potential can give investors a better sense of the company’s long-term potential.
Key risks and challenges
Investing in an IPO comes with risks and challenges. It is important to consider factors like competition, regulatory risks, and potential market disruptions. For example, the space industry is highly competitive and capital-intensive, and SpaceX faces significant risks in its Mars colonization plans. Understanding the potential risks and challenges can help investors make informed investment decisions.
Expert opinions and predictions
Reading expert opinions and predictions can also be helpful when evaluating an IPO. This includes analyst reports, industry publications, and expert commentary. For example, analysts may have different opinions on a company’s valuation or growth potential. Understanding the expert opinions and predictions can give investors a better sense of the company’s potential.
How to invest in an IPO
Investing in an IPO typically involves working with a broker or investment bank that is involved in the IPO process. This can include buying shares directly from the company or buying shares on the secondary market after the IPO. It is important to understand the fees and potential risks involved in investing in an IPO before making any investment decisions.
Conclusion and final thoughts
Investing in an IPO can be a great way to access new investment opportunities and potentially benefit from a company’s growth. However, it is important to do your due diligence and research the company thoroughly before investing. Understanding the company’s background, financials, industry trends, and potential risks and challenges can help investors make informed investment decisions. The top 8 IPOs to watch in 2023 have unique backgrounds and potential for long-term growth, but also face risks and challenges that investors should consider before investing.
