Upcoming IPOs to go after in 2023 – All You Need to Know
In the dynamic landscape of initial public offerings (IPOs), several companies are poised to make their mark in 2023. These potential public offerings span various industries, from technology and finance to consumer services. As the market eagerly awaits their debuts, here’s a closer look at upcoming IPOs in 2023.
Upcoming IPOs in 2023
Instacart Inc.
The grocery delivery giant, Instacart, has opted to postpone its plans to go public in 2022. Despite the ongoing speculation around its financials, reports suggest that its revenues surged by over 50% to approximately $2.5 billion. This growth signifies the service’s sustainability beyond the pandemic-induced demand. While the valuation remains around $10 billion, comparisons with DoorDash’s performance could impact investor sentiment.
Chime Financial Inc.
Chime, the digital bank targeting young adult customers, had initially considered an IPO in 2022 but postponed it due to market conditions. With fintech stocks rallying in 2023, Chime’s debut could be more promising. However, differentiation from competitors like SoFi will be crucial for Chime’s valuation as a tech company rather than a conventional bank.
Arm Ltd.
The British chip designer, Arm, is poised to go public as early as September, with Softbank seeking to raise $10 billion in exchange for an undisclosed stake. The resurgence of chip stocks and incentives for chip manufacturing in the U.S. add to the favorable climate for Arm’s IPO. The company’s focus on artificial intelligence technology sets it apart in an evolving tech landscape.
Stripe Inc.
Stripe’s position as an online payment processing firm has made it a strong contender for an IPO, reportedly with $14.4 billion in 2022 revenue. While estimates suggest a valuation of up to $55 billion, Stripe’s recent funding rounds mirror the fluctuations in publicly traded tech stocks. The company’s growth potential lies in its expanding base of small business customers and its embrace of AI technology.
Reddit Inc.
Riding the wave of online advertising growth, Reddit garnered $510 million in revenue in 2022. Its valuation could reach $10 billion, driven by its higher growth rate compared to industry giants Google and Facebook. Reddit’s profitability and free cash flow will play a pivotal role in determining its valuation amidst the evolving online advertising landscape.
