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Looking Forward: The 5 Most Anticipated IPOs of 2021

Kison Patel
CEO and Founder of DealRoom & M&A Science
Kison Patel
CEO and Founder of DealRoom & M&A Science

In economic terms, 2020 will be long remembered as one of the most turbulent of all time. But despite the turbulence, the year was a bumper one where IPOs were concerned. 2020 has seen companies as diverse as data analytics firm Palantir, online mattress retailer Casper, music publishing group Warner Media Group, and software company Snowflake listing. Snowflake was the biggest software IPO of all time.

This rush to make it to market shows no sign of slowing down, either: One of the most hotly anticipated IPOs in years - that of AirBnB - is expected to occur before the end of the year, having filed confidentially in August 2020. AirBnB has had a tough year, with tourism grinding to a virtual standstill, but investors see long-term value in the company, which could give it a valuation north of $30 billion.

The signs are that 2021 may be just as eventful for public listings. The fact that Ant’s IPO - forecasted to be the largest of all time - was scuppered at the beginning of November may mean that it will happen in 2021. However, even if Alibaba’s financial arm doesn’t achieve a public listing in the next 12 months, there are plenty of other big companies that will. Below, we look at some of the highlights.

The Biggest IPOs of 2021

  1. Bumble - estimated Valuation: US$6-8 billion
  2. Instacart - Estimated Valuation: US$30 billion
  3. Petco - Estimated Valuation: US$6 billion
  4. Nextdoor - Estimated Valuation: US$4-5 billion
  5. RobinHood - Estimated Valuation: $8-10 billion

1. Bumble

Estimated Valuation: US$6-8 billion

The world’s second favourite dating app has already hired Goldman Sachs and Citigroup to underwrite its IPO at the beginning of 2021. The 6-year old company already has in excess of 100 million users, many of which subscribe for added services on its mobile application, giving it large recurring revenue. Private equity group Blackstone took a majority stake in MagicLab in 2019, obviously with one eye on a listing in the short-term. This IPO will undoubtedly be closely watched by Tinder, the biggest player in this market, who are also rumored to be eying an IPO in the coming years.

2. Instacart

Estimated Valuation: US$30 billion

Goldman Sachs can look forward to a busy 2021, as it has also been allegedly tapped by Instacart to underwrite its $30 billion initial public offering, expected to occur in the first half of 2021. While companies like Amazon and Alibaba tend to steal the limelight in ecommerce ( with some justification), a $30 billion listing for Instacart shows that they’re not the only ones competing in the market. Instacart is a grocery delivery app which has agreements with more than 30,000 retailers. The team behind the IPO may have been stalling on an IPO until a verdict was reached on the status of delivery staff as independent contractors. Having achieved that in a court ruling, it appears there were no further obstacles to seeking a public listing.

3. Petco

Estimated Valuation: US$6 billion

The pet supplies industry is booming. As couples postpone the decision to become parents for longer and longer, the tendency over the past number of years has been for domestic pets to fill the void once filled by children. And best of all for investors, it’s a highly defensive industry: People don’t stop feeding their pets, even in an economic downturn. That’s why the listing of Petco in 2021 will be so keenly watched. With its network of over 1,500 retail locations, the company is well positioned to capitalize on the thriving domestic pet economy. One note of caution, however - this isn’t their first rodeo: Petco has already listed in 1994, 2000 and 2002. Fourth time’s a charm.

4. Nextdoor

Estimated Valuation: US$4-5 billion

An IPO for Nextdoor has a vague feeling of one of those IPOs at the beginning of the 2000s for technology firms with few little cash flow and lots of big promises. However, move forward twenty years and social media is a viable business model. Nextdoor is a social media platform aimed at neighborhoods, allowing users to make connections (the second company on this list to do so), making and requesting recommendations, buy and sell items and advertise goods and services for sale. The site is already active in over 250,000 neighborhoods across 11 different countries, and has the potential to move into several directions, including last-mile delivery, home sales and ecommerce.

5. RobinHood

Estimated Valuation: $8-10 billion

The legend goes that the original Robin Hood, “robbed from the rich and gave to the poor.” That’s not quite the proposition of RobinHood, although it does put stock trading - traditionally out of reach for many - at the fingertips of the masses. The inspiration for the company came to its founders during the Occupy Wall Street protests some years back when they thought that investing needed to be democratized.

The result is the world’s most popular stock trading application. However, with many of the big firms in the banking industry now offering almost identical products to their own customers, and often with 0% commissions, it may be difficult to convince investors that this is a solid long-term investment.

Conclusion

All the signs are that 2021 will be a big one for IPOs. But it’s not just mega deals. Hundreds of firms are also gearing up to list on indices across the world, many of them DealRoom clients. The IPO process is a maze of documents and filings which requires good virtual data room services. Talk to us if you’re considering an IPO in the near future about how DealRoom can help you and your company to simplify the process and ensure that your firm achieves as high a valuation upon listing as possible.

In economic terms, 2020 will be long remembered as one of the most turbulent of all time. But despite the turbulence, the year was a bumper one where IPOs were concerned. 2020 has seen companies as diverse as data analytics firm Palantir, online mattress retailer Casper, music publishing group Warner Media Group, and software company Snowflake listing. Snowflake was the biggest software IPO of all time.

This rush to make it to market shows no sign of slowing down, either: One of the most hotly anticipated IPOs in years - that of AirBnB - is expected to occur before the end of the year, having filed confidentially in August 2020. AirBnB has had a tough year, with tourism grinding to a virtual standstill, but investors see long-term value in the company, which could give it a valuation north of $30 billion.

The signs are that 2021 may be just as eventful for public listings. The fact that Ant’s IPO - forecasted to be the largest of all time - was scuppered at the beginning of November may mean that it will happen in 2021. However, even if Alibaba’s financial arm doesn’t achieve a public listing in the next 12 months, there are plenty of other big companies that will. Below, we look at some of the highlights.

The Biggest IPOs of 2021

  1. Bumble - estimated Valuation: US$6-8 billion
  2. Instacart - Estimated Valuation: US$30 billion
  3. Petco - Estimated Valuation: US$6 billion
  4. Nextdoor - Estimated Valuation: US$4-5 billion
  5. RobinHood - Estimated Valuation: $8-10 billion

1. Bumble

Estimated Valuation: US$6-8 billion

The world’s second favourite dating app has already hired Goldman Sachs and Citigroup to underwrite its IPO at the beginning of 2021. The 6-year old company already has in excess of 100 million users, many of which subscribe for added services on its mobile application, giving it large recurring revenue. Private equity group Blackstone took a majority stake in MagicLab in 2019, obviously with one eye on a listing in the short-term. This IPO will undoubtedly be closely watched by Tinder, the biggest player in this market, who are also rumored to be eying an IPO in the coming years.

2. Instacart

Estimated Valuation: US$30 billion

Goldman Sachs can look forward to a busy 2021, as it has also been allegedly tapped by Instacart to underwrite its $30 billion initial public offering, expected to occur in the first half of 2021. While companies like Amazon and Alibaba tend to steal the limelight in ecommerce ( with some justification), a $30 billion listing for Instacart shows that they’re not the only ones competing in the market. Instacart is a grocery delivery app which has agreements with more than 30,000 retailers. The team behind the IPO may have been stalling on an IPO until a verdict was reached on the status of delivery staff as independent contractors. Having achieved that in a court ruling, it appears there were no further obstacles to seeking a public listing.

3. Petco

Estimated Valuation: US$6 billion

The pet supplies industry is booming. As couples postpone the decision to become parents for longer and longer, the tendency over the past number of years has been for domestic pets to fill the void once filled by children. And best of all for investors, it’s a highly defensive industry: People don’t stop feeding their pets, even in an economic downturn. That’s why the listing of Petco in 2021 will be so keenly watched. With its network of over 1,500 retail locations, the company is well positioned to capitalize on the thriving domestic pet economy. One note of caution, however - this isn’t their first rodeo: Petco has already listed in 1994, 2000 and 2002. Fourth time’s a charm.

4. Nextdoor

Estimated Valuation: US$4-5 billion

An IPO for Nextdoor has a vague feeling of one of those IPOs at the beginning of the 2000s for technology firms with few little cash flow and lots of big promises. However, move forward twenty years and social media is a viable business model. Nextdoor is a social media platform aimed at neighborhoods, allowing users to make connections (the second company on this list to do so), making and requesting recommendations, buy and sell items and advertise goods and services for sale. The site is already active in over 250,000 neighborhoods across 11 different countries, and has the potential to move into several directions, including last-mile delivery, home sales and ecommerce.

5. RobinHood

Estimated Valuation: $8-10 billion

The legend goes that the original Robin Hood, “robbed from the rich and gave to the poor.” That’s not quite the proposition of RobinHood, although it does put stock trading - traditionally out of reach for many - at the fingertips of the masses. The inspiration for the company came to its founders during the Occupy Wall Street protests some years back when they thought that investing needed to be democratized.

The result is the world’s most popular stock trading application. However, with many of the big firms in the banking industry now offering almost identical products to their own customers, and often with 0% commissions, it may be difficult to convince investors that this is a solid long-term investment.

Conclusion

All the signs are that 2021 will be a big one for IPOs. But it’s not just mega deals. Hundreds of firms are also gearing up to list on indices across the world, many of them DealRoom clients. The IPO process is a maze of documents and filings which requires good virtual data room services. Talk to us if you’re considering an IPO in the near future about how DealRoom can help you and your company to simplify the process and ensure that your firm achieves as high a valuation upon listing as possible.

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