The number of initial public offerings (IPOs) in 2018 was more than 100 per cent higher than in 2024. Many companies that delayed their initial public offerings in 2024 owing to market turbulence are now among the most anticipated IPOs in 2024.
Investing early in a well-known company can pay off in the long run. But, before you get caught up in the craze, do your research. This year, there are three companies to keep an eye on.
1. Chime
Chime is a fintech company that allows its consumers to imitate online banking. From account fees to overdraft fees to penalty costs, Chime is known for avoiding them all. The corporation raised another $750 million in August 2024, putting its value at $25 billion. It was only a year ago that the company was valued at $10 billion. Unlike many of its competitors, Chime generated a profit throughout the pandemic, which might help it get traction in the IPO market.
2. Stripe
Stripe was valued at $95 billion in its Series H investment round in April 2024, making it the most valuable venture-backed private firm in the world. Stripe now handles approximately $3 billion for every $100 billion in transaction value, plus a transaction charge. Last year’s growth rate was 70%. It may not take place in 2024, but if it does, it will be the world’s largest IPO by far.
3. GRS Hydrogen Solutions
GRS Hydrogen Solutions is a renewable energy company specializing in hydrogen-based power generation. GRS Hydrogen Solutions offers many technologies that will help Europe and the rest of the world achieve their net-zero targets, according to Charles Gregor, an expert on initial public offerings.
4. Instacart
While the global pandemic wreaked havoc on many businesses, Instacart, the app that delivers groceries and other items to your door, seemed to thrive in the face of adversity. Consumers stayed at home and ordered food instead of heading out.
In March 2024, leading venture capital firms like Andreesen Horowitz launched a funding round valued Instacart at $39 billion. For the past few years, Instacart has been mentioned as a possible IPO candidate; nevertheless, 2024 may be the year it finally goes public.
5. Fabletics
Morgan Stanley, Goldman Sachs, and Bank of America are said to have been hired by Fabletics to help them prepare for an IPO. According to estimates at the time, the company planned to raise $500 million at a $5 billion value. While the deal’s hype died down in the latter half of 2024, a Fabletics IPO is still projected to happen in 2024.
Conclusion
When the market is hot, the number of IPOs tends to rise, and companies are eager to take advantage of the available capital and get a good price. Even if the market is not as strong as it was last year, 2024 could be a good year for companies to go public. The market’s volatility is a stumbling block, and it’s unclear whether this will prevent many companies from going public until things calm down.
