IPO prospects for 2023

IPO prospects for 2023

There is hope that the IPO market will recover in 2023 thanks to the lagging behind companies planning to go public after postponing their plans in 2022.

Nasdaq CEO Adena Friedman said at a recent Reuters NEXT conference that there are about 200 companies waiting to list on the Nasdaq exchange, though that’s down from the average of 250 to 300 companies in recent years. Lynn Martin, president of the Intercontinental Exchange’s New York Stock Exchange, described the pipeline as “huge”.

Elsewhere, Laura Cha, chairman of HKEX, which runs the New York Stock Exchange, said about 100 companies are preparing to list.

However, the situation remains challenging as inflation remains high, rates continue to rise and economic growth slows, fueling fears of a recession in 2023. continue to wait in 2023 for better conditions.

This suggests that the IPO market may remain sluggish in early 2023, with any significant rally likely to occur later this year – and assuming the economic outlook improves.

Investors are currently prioritizing companies that can generate consistent earnings and cash flow during challenging times over companies with growth potential, and this will be an important consideration for any company looking to sail into rough seas in 2023.

Beware of SPACs in 2023. We have seen the surge in SPAC registrations fade in recent years and almost stop in 2022. Many of those who sign up don’t have the time to find the right target and take the company public, and those who have succeeded have done so. are not performing well and have had a harder time getting PIPE funding – all of which will get even worse in 2023.

We will likely see more SPACs fail and return funds to investors in 2023, with fewer new blank companies entering the market.

As for tensions between the United States and China, hopes have risen that the pair can find a mutually acceptable way to screen Chinese companies and restart the flow of companies choosing to list on US stock exchanges.

Beijing and Washington signed an agreement in 2022 that allowed U.S. regulators to evaluate the accounting firms used by Chinese companies, though differences remain between the two and neither side seems completely satisfied.

For now, the threat that Chinese companies like Alibaba, NIO, and could be kicked off the US stock exchanges has diminished in 2022, but it still exists. However, as the United States and China also clash over a range of other issues, from semiconductor chips to Taiwan, the situation remains fragile and could continue to put pressure on the confidence of Chinese companies hoping to attract American investors in 2023.

Continued regulatory pressure, COVID-19 disruptions and economic slowdowns may also give Chinese companies more reason to reconsider their IPO plans.

trading account on the stock exchange

Upcoming IPOs in 2023

Find out about major upcoming IPOs by potential market cap.

1. Stripe – Estimated Market Cap: $74 billion.

Rumez filed for an IPO in July 2021 but delayed the listing due to various unforeseen events and market volatility. There is no set plan yet for Stripe’s IPO date, but that hasn’t stopped the hype surrounding its potential listing in 2023.

2. ARM – Estimated Market Cap: $60 billion.

SoftBank Group is set to list its ARM Ltd segment in an IPO that could raise up to $60 billion. However, it is likely that the company will wait until other chip stocks recover some of their losses before listing.

3. VinFast – Estimated Market Cap: $60 billion.

The Vietnamese electric vehicle manufacturer has filed for an IPO in the United States on December 6, 2022. Although the date is unknown, it is likely that the company will aim to complete the listing during the first months of the year.

4. TikTok – Estimated Market Cap: $50 billion.

While TikTok’s IPO is one of the most anticipated for 2023, it’s unlikely to happen any time soon. The company is still struggling with regulatory issues related to the company’s use of data.

5. Chime – Estimated Market Capitalization: $40 billion.

Chime planned an IPO for March 2022, but it was delayed due to market uncertainty. The company was last valued at $25 billion in a private funding round, although it is still targeting $40 billion as its IPO cost target.

6. Revolut – Estimated Market Cap: $33 billion.

Revolut was supposed to go public in 2022, but a company spokesman said he was waiting for “the coming time.” The company’s last known valuation was $33 billion and it has not publicly announced an IPO plan.

7.Databrick. Estimated market capitalization: $31 billion.

Databricks is another company that planned to list in 2022 but was pushed back to 2023 due to market conditions. In October 2022, Databricks lowered its internal share price, lowering its implied valuation to $31 billion.

8. Instacart – Estimated Market Cap: $14.2 billion

The Instacart valuation is the subject of much speculation. When it went public in May, it was worth an estimated $39 billion, but as the new year approaches, its valuation is around $24 billion.

9. Reddit – Estimated Market Cap: $15 billion.

Reddit asked to go public at the end of 2021, but changed the plan for 2022 due to the market crash that occurred after the Russian invasion of Ukraine. There are still no updated IPO plans.

10. Discord – Estimated Market Cap: $15 billion.

Discord’s IPO date has yet to be announced, but it’s likely that a listing on the NYSE or Nasdaq could take place in early 2023. The latest funding round in September 2021 is valued at around $15 billion.

Rebecca Cuttlin and Joshua Warner, » Official site stock exchange fomc

Disclaimer: The information and opinions contained in this report are for general information only and do not constitute an offer or solicitation to buy or sell any currency contracts or CFDs. Although the information contained herein has been obtained from sources believed to be reliable, the author does not guarantee its accuracy or completeness and accepts no liability for any direct, indirect or consequential damages that may result from anyone relying to such information.

Back to top button

Adblock Detected

Please consider supporting us by disabling your ad blocker.