In the world of finance, Initial Public Offerings (IPOs) can serve as a sign of market confidence and future trends. The forthcoming year, 2024, holds promise for a host of some of the Best Upcoming IPOs that could potentially skyrocket. In this article, we’ll review five of the most eagerly awaited tech IPOs slated for 2024.
The Rollercoaster Ride of 2023
The tech sector anticipated a resurgence of IPOs in 2023 as startups began to make their way back to the stock market following years of turbulence caused by the pandemic. However, the year saw a smaller number of startups going public, with several companies putting off their public offerings.
Despite the lukewarm debuts of companies like Instacart and Klaviyo, who declared their intention to go public in 2023, the IPO wave that investors were hoping for continued.
We’ve also witnessed the successful IPO of Arm Holdings plc (NASDAQ: ARM), which’s good reports that Q3 of 2023 made its stock rise by 50% in one day.
The 2024 IPO Outlook
Despite the lack of performance of tech IPOs in 2023, financial experts hold differing views on what 2024 has in store. While some venture capitalists remain cautious about a stable enough market for new tech IPOs, others are hopeful that the Federal Reserve’s promised rate cuts and a weak M&A market will provide an optimal environment for companies that have postponed their IPOs to take the plunge finally.
Lise Buyer, founder of the IPO consultancy Class V Group, opines, “The outlook is merry and bright for the 2024 IPO market.”
Discord
Discord, a popular social messaging platform, has been generating IPO buzz since it reportedly rejected a $10 billion acquisition offer from Microsoft at the end of 2021. Discord’s IPO was widely anticipated in 2023, especially after it was valued at $15 billion in a funding round that year. However, market volatility leaves the company’s potential IPO valuation in 2024 uncertain.
Early in 2023, Reddit began preparations for its public debut. The social media company initially aimed to launch its IPO at a $15 billion valuation. However, market fluctuations led the company to delay its IPO. As per Bloomberg, Reddit is now considering a first-quarter IPO in 2024 and is in talks with potential investors such as Goldman Sachs and Morgan Stanley.
Chime
Chime, a digital and fee-free banking company valued at $25 billion in a 2021 funding round, reportedly hired Goldman Sachs in 2022 for IPO advice. Despite denying any immediate plans for a public debut, the digital bank might have been merely biding its time, waiting for more favourable market conditions.
Stripe
In January 2023, fintech startup Stripe announced a one-year timeline to decide on going public, with the deadline fast approaching. The company, which was valued at $95 billion in 2021, raised $6.5 billion in March 2023 at a lower, yet significant, valuation of $50 billion.
Klarna
Following the company’s first profitable quarter since 2019, Klarna’s CEO, Sebastian Siemiatkowski, announced that the company is “pretty much ready” for an IPO. Despite the buy-now, pay-later firm’s valuation dropping from $45.6 billion to $6.7 billion in 2022, Siemiatkowski stated that he was waiting for a “sane market” before launching a public offering.
Wrapping Up The Most Anticipated Upcoming IPOs
In conclusion, the tech IPO landscape for 2024 promises to be exciting, with several high-profile companies potentially making their public debut. Investors and market followers would do well to keep an eye on these Best Upcoming IPOs. Maybe one of those can be as rewarding as ARM’s IPO.
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