By The IPO market is one of the main sources of funding for small companies, and these companies often need to raise a large amount of capital before they can achieve the kind of growth that they want. IPOs are an option that allows companies to sell shares of their company to the public, raising money from investors who are willing to pay a premium for the opportunity to own stock in the company.
While an IPO can be a lucrative option for a company, it is not something that should be done without serious consideration. IPOs are the first step for companies to become public, and they require a formal underwriting process that is done by investment banks and brokers.
IPOs can be tricky and can be risky for investors. There are many factors that can affect the success of an IPO, including investor sentiment, the underlying business and the economic climate.
The IPO market has been struggling this year. The number of IPOs in 2023 has been declining, while the amount of funds raised through these deals has also declined. This has led to a number of private companies rethinking their plans to go public.
Some of these companies could see their IPOs postponed, but there are still a few that could go ahead in 2023. Here are a few that you should keep an eye on in the year to come:
Social Messaging Platform Discord
Discord is a social messaging app that has been gaining attention as it looks to expand its user base beyond just digital advertising revenues. It has 140 million monthly active users, which should give it some significant subscription revenue in the future.
This app has been valued at $15 billion, so it’s a potential unicorn. This could make it a good candidate for an IPO, though it’s been hard for tech companies to gain momentum lately.
Stripe
Another potential unicorn, Stripe is a payment processing service that has a valuation of $95 billion. This is the type of company that VCs are chasing with the hopes of getting a big return for their money. Its recent financial woes may have slowed it down from being a potential go-public candidate, but the entrepreneur community still has faith in it.
Vinfast
This electric vehicle start-up from Vietnam is trying to cash in on the EV trend, and it could be an attractive IPO if it can get its finances in order. The company has been trying to raise funds, but it’s unlikely it will be able to do so before 2023.
Mobileye
Intel subsidiary Mobileye is making chips for self-driving cars and other advanced driver assistance systems. Its technology is used in most cars on the road. Its stock price has risen since going public in 2010, but the bear market has weighed on its valuation.
Despite the gloomy outlook for the stock market, it’s worth taking a look at some of these companies that have been waiting for the perfect moment to go public. These IPOs will be interesting to watch in the year to come, and could prove to be some of the biggest winners in the 2023 year.
