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Initial Public Offerings (IPOs) are an excellent way to see your investments grow if the company has good underlying business. Just think of all the profits you’d have attained if you’d invested in Amazon or Apple’s IPOs. Investors seemed to think this too, with more than 450 IPOs raising an accumulative $156 billion in 2020.
The way investors flocked to IPOs in 2020 shows that they want to find the next big company. At the very least, 2020 saw strong enthusiasm for IPOs despite the year that it was. In light of the companies going public and investors being keen, we thought we’d list 5 IPOs that you don’t want to miss.
5 of the Best IPOs in 2021
The following are only a selection of the IPOs to be held in 2021. More companies seem attracted to the idea of going public and raising capital, so expect plenty of opportunities. Take this as a starting point for your investment research.
Stripe is a payments processing company that provides developers with the tools to integrate its solutions. The company has become popular for its customizability and support for various payment options.
Fintech is one of the fastest growing industries, with new solutions and companies regularly making the headlines. Stripe has positioned itself well as a company, “building the economic structure of the internet.” It has 2 million customers as of 2019, a figure that is now likely much higher.
Those clients span 100 countries, and include Target and Lyft. The company had previously been valued at $36 billion, with a funding round in April raising $600 million. Stripe is leveraging the fact that the world is inexorably heading towards a financial revolution.
Robinhood, like Stripe, also operates in the fintech space. Among millennials especially, Robinhood is a favorite for mobile stock trading. The modern broker with a sleek interface has drawn in a whole swathe of investors with disposable income.
The company made headlines on multiple occasions in 2020. It gained attention for its sudden influx of young investors, while drawing criticism for security issues. The user base grew from 10 to 13 million in 2020.
Robinhood has raised capital several times in 2019 and 2020, its latest valuation putting it at $11.2 billion. The lead underwriter for the IPO is Goldman Sachs, with a debut of $20 billion expected. In any case, Robinhood is a company that is showing signs of growth, making it worthwhile to consider.
One of the most popular cryptocurrency exchanges in the US, Coinbase has experienced a phenomenal rise alongside the market. Even as Binance tries to gain a foothold in the US, Coinbase stands strong as the go-to crypto exchange.
In recent years, the company has stressed its adherence to regulation, aiming to serve as a bridge between traditional and decentralized markets. It found itself in controversy in 2020, which damaged its reputation and raised questions about the IPO.
With over 35 million users in 100 countries, Coinbase can use raised capital to gain a global foothold. Its strong presence in the US is not matched by as strong an international presence. Given how the crypto market is going, Coinbase may be one of the most high profile IPOs this year.
The latest in the online game, “create your own experience” platform, Roblox is a major hit, accelerated by the pandemic. Most users are under 16, and the total player count stands at over 150 million monthly active users. The developer count stands at nearly 1 million.
Roblox raised $520 million as recently as January 2020, with a direct listing now expected. The funding allowed the company to go from an IPO to be directly listed. The current valuation is a staggering $29.5 billion, set to grow as player count and gameplay time increases year-over-year.
Instacart is a grocery and delivery service company that operates in the United States and Canada. The platform experienced tremendous growth during 2020, when lockdowns had changed daily living. The company has also tied up with Walmart in several states to offer same-day delivery services.
That outreach includes 400 retailers across 30,000 stores. The last fundraising round in October 2020 put Instacart’s valuation at $17.7 billion. With an IPO, Instacart could possibly capitalize on its pandemic-led growth to become a major player in the near future.
If you did a quick search for IPOs in 2021, you’d see many more than what’s on this list. But the ones here are among the more anticipated ones. They are companies that were considered strong market shakers before their IPOs were announced.
The same principles of investment apply to IPOs. Except if you make the right decision here, you stand to gain much more as an early investor. Keep a close eye on 2021 and take advantage of emerging companies that are going public.
What do you think of the companies listed here? Do you have suggestions of your own? Let us know what you think in the comments below.