Arm Holdings (estimated market cap: $40 billion)
Arm Holdings designs microprocessors and related technology and software found in around 95% of smartphones. It has approximately 6000 employees globally and 3000 in the UK.
Arm’s holding company SoftBank announced a deal for Nvidia to acquire Arm in 2020, leading to an estimated $40 billion valuation. In early 2022, however, the deal fell through, with Nvidia and Arm both citing regulatory challenges as the primary reason.1
While often referred to as ‘the jewel in the crown’ of British technology, it’s unclear at this point where Arm will go public – on the tech-focused Nasdaq stock market or its home exchange, the LSE. A dual listing could be on the cards and has been making its rounds on the rumour mill, too.
EG Group (estimated market cap: £26 billion)
A blockbuster IPO is on the cards for British retailer EG Group. The company has over 6000 petrol stations and convenience stores in the UK, continental Europe, the US and Australia.
With acquisitions that include 52 KFC sites in the UK, supermarket chain Asda and restaurant chain Leon, many investors are keeping a close eye on EG Group’s potential listing. The billionaire brother owners, Mohsin and Zuber Issa, are reportedly considering merging EG Group and Asda – a business combination that could value the company at around £26 billion.2
EG Group recorded its EBITDA for Q3 2021 at £320.8 million and a turnover of £5.4 billion for the same period.3
Revolut (estimated market cap: £25.3 billion)
Revolut, the app-based bank headquartered in the UK with more than 18 million worldwide customers, was founded in 2015 and has been a UK-regulated electronic money institution since 2016.
Its primary market is the UK and a public listing is most likely to be on the LSE; however, the finance company continues to expand its US operations, having grown the leadership team there in March 2022, so there’s a possibility it may go public in the US.4
CEO and co-founder Nikolay Storonsky indicated in late 2021 that the business would need to see a few billion dollars in annual revenue before going public. However, fundraising efforts in July 2021 garnered $800 million and set its estimated market cap at around $33 billion (£25.3 billion).5
Monzo (estimated market cap: £4.5 billion)
Monzo is an online bank with over six million customers, of which around 135,000 are on paid account tiers. The company is one of the leading UK innovators offering a non-traditional option to banking.
Alongside its upcoming IPO, Monzo is also focusing on US expansion plans, having already appointed CEO Carol Nelson for its US operations.
In December 2021, the company confirmed that its valuation was estimated to be about £4.5 billion – this came after securing an additional £500 million in its latest funding round.6
BrewDog (estimated market cap: over £2 billion)
BrewDog, started as a small operation in Scotland. The company’s crowdfunding route, that proved vital in its early years, secured about 200,000 investors.
In June 2021, an open letter with allegations of a toxic work culture within the company was published by a number of former employees. BrewDog’s co-founder and CEO James Watt issued an apology, but until recently, it was unclear how the allegations would affect the company’s plans to go public.
However, the UK’s biggest craft beer maker announced its plans to IPO in January 2022, listing on the LSE with the help of Freshfields.
The business’s value is estimated to be over £2 billion.7
Jaguar Land Rover (estimated market cap: £2 billion)
Jaguar Land Rover (JLR) is part of India’s Tata Motors, which is already listed in India and New York.
Optimism surrounding JLR’s IPO has dwindled as a result of declining diesel sales, a drop in Chinese demand and – more recently – the coronavirus crisis.
Making 64,032 dealership deliveries in vehicles between July and September 2021, the company saw a 12.8% year-on-year decrease in Q3 2021. For the same period, retail sales also dropped by 18.4% (to 92,710). The dips in numbers is said to be due to the global semiconductor shortage.8
However, demand is reportedly still high for JLR vehicles – the company is said to have around 125,000 outstanding orders.8
PureGym (estimated market cap: £1.5 billion)
With almost 300 clubs across the UK, PureGym is considering an IPO as a means of funding expansion.9 Since its 2009 launch, the company has gained over a million members, more than 500 gyms and around 3 000 employees.
In 2016, PureGym announced that it was getting ready to list on the London Stock Exchange (LSE). The company backed out of these plans, citing weak investor enthusiasm.
In 2017, PureGym was valued at £600 million after Leonard Green & Partners acquired majority ownership of the business.10
The gym operator’s IPO was expected to happen in 2021, but the plans were shelved, while the company got a £300 million injection – an equity investment from KKR, a US private equity firm. This is said to have bumped the PureGym’s valuation up, north of £1.5 billion.11
Starling (estimated market cap: £1.4 billion)
Starling is one of the UK’s leading digital-only banks. It was founded in 2014 by Anne Boden, a former banking executive. Boden, who’s also the CEO of Starling, is hoping to list the company in London.
In an early 2021 fundraising round, Starling raised £272 million. The company then announced that it got a £50 million extension on this funding round, an investment from Goldman Sachs Growth Equity, increasing the total to £322 million. At this point, the company’s market cap was estimated at £1.4 billion.12
With over two million current accounts, the company isn’t only planning to expand its products and services, it’s also looking to broaden its offerings into Europe.
In November 2021, it was reported that Anne Boden said she expects the Starling Bank IPO to happen in a year or two.13
Huel (estimated market cap: £1 billion)14
Huel specialises in nutritionally complete, plant-based meal replacements in the form of powders, drinks, snacks and more. The company has grown into the international arena, including locations in continental Europe, the US and Japan.
Huel has an impressive social media presence, which is probably one of the things that keeps it in tune with its younger consumers that are focussed on fitness.
The company is said to have appointed Goldman Sachs and JP Morgan as its advisers for a possible 2022 London IPO. It’s been reported that the investment banks are also advising on a possible sale of Huel, although an IPO is considered to be the preferable option.
In its most recent reporting, the meal replacement company made £103 million in the year ending July 2021 – up from £72 million the previous year.15
Snowfox Group (estimated market cap: £750 million)16
Snowfox Group is a multinational Japanese food business that serves customers in the UK, US and Canada.
Its operations include running restaurants and supplying sushi as well as other Japanese food to retailers such as Asda, Walmart, Kroger, Sam’s Club and Tesco. Snowfox Group sells over 60 million trays of sushi a year and employs over 3000 people worldwide.
The company’s majority shareholder, Mayfair Equity Partners, is reportedly looking into a 2022 LSE IPO.
The company saw a decrease of almost 30% in its year-on-year revenue from £191 million in 2020 to £134.3 million in 2021. However, it saw a rise of £16 million to £17.1 million in EBITDA for the same period.17
McLaren Group (estimated market cap: £560 million)
McLaren Group, the British Formula One firm and sports carmaker, has been linked to an IPO since 2011 when its executive chairman stated that it might happen within five years.
There have been reports that the company might go public through a reverse takeover in 2021. With a special purpose acquisition company (SPAC) called McLaren Technology Acquisition listing on the Nasdaq Global Market in November 2021, there was renewed interest in the McLaren Group listing.
A SPAC is a company with no commercial operations that has been specifically set up to facilitate the transition for a private firm to go public through a merger – this method of listing has been gaining popularity as an alternative to a traditional IPO.
The company was valued at £560 million in December 2020 after a round of funding from a group led by MSP Sports Capital, which is said to have obtained a significant minority stake of the company.18 In July 2021, McLaren CEO Zak Brown confirmed that the company raised £550 million – Ares Management and PIF, a Saudi Arabian state fund, were the majority investors.
It should be noted that the environment for carmakers has been very volatile in recent years, with Brexit impacting supply chains and the trade war raising the cost of doing business.
Virgin Atlantic (estimated market cap: unknown)
Virgin Atlantic, a subsidiary of Virgin Group, had its first flights taking off in 1984. The company, like the entire airline industry, was hit hard by the effects of Covid-19. This led to Virgin Atlantic filing for bankruptcy.
As economies are recovering and the demand for international travel is increasing, the company had its sights set on a 2021 London Stock Exchange (LSE) IPO. However, the company is said to have delayed its listing plans to focus on the reopening of the transatlantic market.
The latest reports indicate that the Virgin Atlantic IPO might happen sometime early on in 2022, but so far, nothing further has been announced.19
Covid-19 continued to plague the airline in 2021, with its latest financial report showing a loss of £594 million before tax and exceptional items – and the company doesn’t expect to turn a profit until next year.20
Stripe (estimated market cap: $95 billion)
Established by the Collison brothers in 2010, Stripe is a fintech company that develops economic infrastructure to facilitate digital payments and other financial business management processes. Stripe enables millions of companies to start, run and scale their businesses in over 120 countries.
In March 2021, Stripe was valued at $95 billion after a $600 million fundraising round.21 The company is said to be considering a direct listing, and has reportedly also appointed a legal firm to assist in its listing preparations.
Although there was talk of the company going public by end 2021, Stripe announced in November that it’s content with being a private company for the time being, with no plans to pursue IPO status in the near future. However, that may change after the company released an early 2022 report. This revealed that the number of payments processed increased by 60% in 2021 from the previous year and that the payment processor had onboarded an average of 1400 new companies every day in 2021.22
The sheer size and scope of this fintech means it is certainly a potential IPO to watch.
Mobileye (estimated market cap: $50 billion)
Mobileye is an Israeli self-driving car company which was acquired by US tech titan Intel Corp in 2017, to become Intel’s self-driving division.
In fact, there have even been rumours – not yet confirmed – that Mobileye could start the world’s first true driverless taxi business. This would represent a significant step towards a self-driving future and would likely boost Mobileye’s value even higher, if the news proves to be true.
In March 2022, Intel quietly and confidentially filed with the SEC , despite announcing on 7 December 2021 its plans to publicly list Mobileye in the middle of 2022 – news which sparked great excitement in the IPO space and a 2.6% climb in the Intel Corp share price.
There’s no indication yet of when Mobileye will go public, with Intel saying the IPO will be held only after the SEC had reviewed its application amid market considerations.23
Mobileye could be valued around $50 billion in the listing, which would value the company at more than triple what Intel Corp paid for it in 2017.24
TikTok Global (estimated market cap: $50 billion)25
A TikTok IPO is an exciting prospect for many, and has been for a while – the international arm of the social media phenomenon has been rumoured to be pursuing an IPO for new company TikTok Global as early as mid-2020.26
TikTok is owned by Chinese company ByteDance, which postponed plans of its own to list offshore in July 2021, after Chinese regulators raised data security concerns. August 2021 reports then stated that the parent company was addressing regulatory concerns to get ready for its IPO – a Hong Kong listing – which is expected to happen in 2022.
Under the Trump administration, TikTok Global seemed as though it would need to find American buyers in 2020. The mega-successful app was valued somewhere between $50 billion and $60 billion when blue-chip companies Oracle and Walmart expressed interest.27 However, the sale of TikTok Global fell through when US President Biden changed the data privacy regulations Trump had put in place.
There are no official dates yet for TikTok Global’s IPO, but it’s thought that the company will list in the US and will complete another round of funding before doing so, while still leaving ByteDance a majority stake in the company.
Databricks (estimated market cap: $38 billion)
Databricks is a software business that’s pioneered a cloud-based data storage platform using machine learning, among other things, to address the growing demand for keeping and organising companies’ online information.
Founded in 2013, the San Francisco company quickly gained attention for its machine-learning and AI capabilities. Later that same year, the company had secured $13.9 million in funding. Within the next few years, it went on to collect an esteemed list of investors, including Microsoft, Google’s CapitalG and Amazon Web Services.
In January 2021, the company raised $1 billion in funding – a move which valued it at $28 billion. Just months later, on 31 August 2021, it announced it had secured another $1.6 billion in funding from investors, valuing the company at an impressive $38 billion.27
Interest in Databricks going public is rife, but no firm plans for an IPO have been announced yet and no date has been set.
Chime (estimated market cap: $25 billion)
Even though it provides banking services, Chime is technically a fintech company, not a bank – the products it provides are offered through its banking partners. In its nine years of operations, it’s garnered millions of customers in middle and lower income Americans.
Initially, Chime aimed for a March 2022 IPO with a valuation of between $35 billion and $45 billion. But prior to this date, it announced its intention to put a public offering on hold and instead focus on developing new services, such as lending and investing features.
Consider, too, that publicly traded fintech stocks have taken a dive since the end of 2021, trading at a 40% lower value between October last year and February of this.
In August 2021, Chime raised $1.1 billion in venture capital at a $25 billion valuation.29
Instacart (estimated market cap: $24 billion)
Instacart is a grocery delivery service, founded in 2012, that’s said to be preparing to go public via a direct listing.
One of Instacart’s biggest partners, Whole Foods, was acquired by Amazon a few years ago, which made some wary of the business’s future. However, Instacart has grown to service 15,000 stores across 400 locations in the US and Canada.
After widespread speculation that the company would go public by the end of 2021, Instacart stated in November that it was postponing those plans. According to the grocery service, this was so that it could focus on growing the business. The news was accompanied by the announcement that the company had hired Fidji Simo of Facebook (now Meta) as its new CEO.
More recently, Instacart’s December 2021 announcement that president Carolyn Everson was leaving after just three months has raised some eyebrows.
In March 2021, after raising $265 million in venture capital funds, the company’s market cap soared to $39 billion – meaning its valuation had more than doubled from its 2020 market cap of $17.7 billion. But early in 2022, the company proactively reduced its valuation to $24 billion.30 Having said that, grocery delivery services are still an attractive option in the post-coronavirus world.
Discord (estimated market cap: $15 billion)
San Francisco’s Discord describes itself as a ‘voice over internet protocol company’. More simply put, it’s an online platform that seeks to connect users with similar interests, as well as friends and family, into groups and communities.
It was valued at $15 billion after raising a $500 million in funding in September 2021.31 This is a jump of more than double what the company was worth previously, when it was valued at $7.3 billion after its previous funding round.
However, it’s thought that the company’s valuation will be even higher than $15 billion once it goes public. As of yet, there’s no set date for Discord’s IPO listing, but the company is aiming for sometime in 2022.
Reddit (estimated market cap: $15 billion)
America’s Reddit is one of the most famous social media platforms, with millions of members around the globe. Founded in 2005, it gained a new relevance for the finance world in late 2020 and January 2021, when a subreddit named ‘wallstreetbets’ took on the whales of Wall Street over shorted stock Gamestop.
Now, it seems, Reddit will join in on the stock game. On September 2021, it was announced that Reddit was hiring IPO advisers, reportedly Morgan Stanley and Goldman Sachs, ahead of preparations for its listing. Just three months later, it confidentially submitted a draft registration with the SEC.
Despite this, no firm date for the IPO has been announced. Reddit is said to be targeting a valuation of $15 billion; in August 2021, it was valued at $10 billion.32
Plaid (estimated market cap: $13 billion)
Another innovator in the fintech space, Plaid enables people to connect their bank accounts with other apps, making it easier for clients to make quick, online transfers and payments. Like many upcoming IPOs, its value skyrocketed during the pandemic as people needed to find new ways to bank that didn’t involve leaving their homes.
In September 2021, the company’s most recent round of funding took place, with JPMorgan Chase and American Express offering an undisclosed amount. In April of the same year, a round of funding totalling $425 million brought Plaid’s valuation to $13 billion.
As a leader in the open banking model, it’s almost inevitable that Plaid will go public – it’s just a matter of when. Rumours abound that it may do so through a SPAC, but it’s all speculation at this point.33
Impossible Foods (estimated market cap: $7 billion)
Impossible Foods specialises in creating innovative plant-based alternatives to meat products. Founded in 2011, the Silicon Valley company has received considerable interest, and counts Bill Gates and Jay-Z among its shareholders.
There were rumours during 2021 that the company was looking to go public within the next year, and that it may be valued at $10 billion when it did so. Further media speculation in November of the same year stated that the company is looking to raise $500 million in another round of funding, which could value the company at $7 billion.34
However, these haven’t been confirmed. Instead, Impossible Foods CEO said in November 2021 that the company has eventual plans to list publicly but have no firm dates in mind.
Graphcore (estimated market cap: $2.8 billion)
Graphcore, a UK semiconductor start-up that designs and manufactures machine learning and artificial intelligence software accelerators, is said to be looking to list on the Nasdaq. Founded in 2016, it reached unicorn status in 2018.
The company has raised around $700 million and has an estimated valuation of $2.8 billion.35 Graphcore’s international operations are supported by offices in locations including London, Munich, Paris, New York, Tokyo and Seoul. The company has around 455 employees.
Graphcore is reportedly looking to go public in 2022 sometime and was rumoured to be considering another round of funding prior to doing so.
ByteDance (estimated market cap: $425 billion)
Chinese start-up ByteDance became a household name after launching its famous TikTok app in 2017, which quickly became one of the most popular social media platforms in the world – particularly for the post-‘Facebook generation’ Gen Z.
According to August 2021 reports, the company is addressing regulatory concerns to get ready for its Hong Kong IPO, which is expected to happen in early in 2022. ByteDance put an indefinite hold on plans to list offshore in July 2021 after local regulators raised data security concerns.
In November 2021, a news story cited internal ByteDance documents saying that the company was also restructuring significantly, including creating a new TikTok business unit that may pave the way for an e-commerce TikTok platform.36
ByteDance’s valuation is estimated at around $425 billion.37 If this proves true when the company lists, it’ll be the new biggest IPO launch ever, after the 2019 Saudi Aramco $25.6 billion market debut.
Ant Group (estimated market cap: $191 billion)
Ant Group is a Chinese online payment company founded by Jack Ma, also the founder of Alibaba. Originally called Alipay and intended to service Alibaba, it was rebranded in 2014 to become a separate entity named Ant Group.
Originally, Ant Group’s IPO was expected to take place on 5 November 2020. However, two days before the listing, the Shanghai Stock Exchange announced that the IPO would be suspended due to regulatory issues. After this announcement, Ant Group suspended the Hong Kong listing itself. The share price for its Hong Kong listing had been set at HK$80, while its Shanghai listed stock was set to start trading at 68.8 yuan.
In November 2021, Ant Group was said to be valued at $191 billion.38 This figure is significantly less than the 2020 valuation ahead of its IPO-that-wasn’t, which would have made it the largest IPO launch in history, with a market cap of $315 billion.
One year later, news began emerging that Ant Group was being significantly restructured in order to make it more compliant with Chinese regulation. While no date for an IPO has yet been announced, this news has given many hope that the company might go public soon – possibly later in 2022.
Porsche (estimated market cap: €90 billion)
Porsche, owned by Volkswagen, is one of the most well-known luxury car brands in the world.
In early 2022, Volkswagen announced it would be assessing the feasibility of a Porsche IPO, and speculators are saying this could take place as soon as the last quarter of the year. With the electric vehicle market charging ahead to make the emissions-free deadline of 2035 in the EU, Volkswagen is likely to IPO this year.
Having said that, the Russo-Ukrainian war could set that back, along with a potential Covid-19 resurgence and tightening monetary environments across the world.
Analysts have placed Porsche’s estimated market cap at around €90 billion if it goes public.39
Klarna (estimated market cap: $45.6 billion)
Swedish fintech Klarna is a world leader in the ‘buy now pay later’ financing space, processing millions of transactions around the world each day. Founded in Stockholm in 2005, the company is a firm favourite in online financing internationally.
In the latter half of 2021, Klarna completed a round of funding which valued it at $45.6 billion, potentially giving it one of the largest fintech market caps in the world.40
It announced its intent to go public in mid-2021, but stressed that it was in no rush and had no firm dates set. It’s thought, however, that an IPO would happen sometime in 2022. No location for the IPO’s listing has yet been announced.
Rimac Automobili (estimated market cap: $6.1 billion)
Rimac Automobili is a Croatian car and component manufacturer that specialises in hypercars. The company uses and builds cutting-edge technology to ensure a high-performance and advanced finished product.
Mate Rimac, who founded the company in 2009, has said that although the company started with ‘hypercars’, it’s now also working with more mainstream vehicles.
While the details regarding Rimac Automobili going public are unknown, a spokesman for the company said in June 2021 that ’as for going public, we're considering different options, but it hasn't been decided which direction we'll go in’.41
Speculation in the media at the time predicted a 2022 date for the car company’s listing, as well as a target valuation of just over $6 billion, but neither of these have been confirmed yet by the company.42
Then, in November 2021, it was announced that Rimac Automobili, in a joint venture with Volkswagen’s Porsche, would be acquiring sportscar stalwart Bugatti.
Mate Rimac himself also broke his silence on the IPO rumours, saying that the company would be going public, but not on any date in the near future. ’It could be in five or ten years,’ he told the media.43
Trustly (estimated market cap: unknown)
Trustly is a Swedish e-commerce and payments platform. Founded in 2008, the fintech company facilitates cardless, app-less online payments and counts Facebook, PayPal, Alibaba, Wise and eBay among its users.
At the start of 2021, the company announced that it would be going public within the next quarter, with an IPO that was said, at the time, to mean a valuation of as much as $11 billion.44
Trustly was all set to make its public debut in the first half of 2021. Then, in May, the company said that it was postponing its listing indefinitely after the Swedish regulator questioned their due diligence process and regulatory compliance.
Nevertheless, Trustly has stated that it’s still aiming for an IPO launch at some point, although no official date or timeline has been set. Although not confirmed, it’s thought that the payments platform will be listed on the Stockholm exchange in Sweden.
Didi (market cap: $68 billion)
Didi, a Chinese ridesharing company, listed on 30 June 2021 on the NYSE, despite political tensions associated with the trade war between the world’s biggest economies, China and the US. A Chinese regulatory probe and a possible Didi ban in the UK are part of the aftermath of the controversial IPO.
With an initial share price of $14, the company was valued at just over $68 billion at the end of its first trading day, which marked the biggest Chinese company IPO to happen in the US. The listing also put Didi among the past decade’s biggest IPOs.
Since then, however, Didi has proved to be a case of how the mighty can fall. It’s one of the most high-profile casualties among several 2021 IPOs whose share prices have tumbled since their big listings.
After its splashy New York debut in June 2021, Didi’s share price fell by more than 50% before 7 October in the same year. This dramatic downtrend is mostly attributed to changes and increased hardening of Chinese regulation – the same reason TikTok owner ByteDance has delayed its own public listing.
Universal Music (market cap: $52.8 billion)
Universal Music Group (UMG) is the world’s largest music label. Some of the company’s artists are The Rolling Stones, Taylor Swift, Alicia Keys, Lady Gaga, Coldplay and Post Malone.
UMG went public on 21 September 2021 in Amsterdam, amid much fanfare. Its first trading day was considered extremely successful, with its share price rising 39% on the day, valuing the company at almost $52.8 billion.
This is a significant increase from the $36.4 billion UMG was valued at after a consortium led by Tencent Holdings completed a 20% acquisition of the global music company’s valuation in December 2020. It is, however, eerily close to an earlier 2021 Goldman Sach’s report that estimated the company’s valuation at $53 billion.
Robinhood (market cap: $31.8 billion)
Robinhood listed on the Nasdaq on 29 July 2021, reaching a valuation of $31.8 billion at the end of its first trading day. Offering 55 million shares, with an opening share price of $38, the company raised $2.1 billion in its IPO.
Robinhood originally started as a stock trading app but it has since expanded into other services. Going public is said to be part of a wider plan to become a full-service finance company over the next couple of years.
Oatly (market cap: $13 billion)
Oatly, a company founded in 1992, went public on 20 May 2021. The Nasdaq listing saw shares priced at $17 each, which increased to $22 soon after trading started. The company was targeting a valuation of $10 billion, but its market cap shot up to $13 billion at the end of its first trading day.
The Swedish food brand produces milk alternatives and a range of other organic products. The rise in oat milk popularity has caused a significant growth in sales in the plant-based milk category. As a result, the Oatly brand is currently available in over 20 countries.
Oatly filed for a US IPO in February 2021, a move that put it on the growing list of publicly traded vegan stocks.
Wise (market cap: £8.8 billion)
Wise, formerly known as TransferWise, marked London’s biggest tech listing with its July 2021 IPO launch. The company reached a valuation of almost £8.8 billion at the end of its first trading day on the LSE.
Having started out offering money transfer services, Wise’s growing product range was the driving force behind the decision to change its name. This fintech company transfers over $7 billion per month to over 10 million international customers.
WeWork (market cap: $6.8 billion)
After WeWork’s plans to go public via an IPO collapsed in 2019, it was second time lucky on 21 October 2021, when the company went public via SPAC. Leading up to its stock market debut, the office-sharing company had been hit hard by the Covid-19 pandemic, reporting a $2 billion loss in Q1 of 2021.
WeWork listed on the New York Stock Exchange (NYSE) through a SPAC merger with BowX Acquisition Corporation. The company’s SPAC deal with BowX valued it at $9 billion. Shares in the company were up, too, by more than 13% on the day of its listing. Then, in November 2021, WeWork’s market cap fell significantly to $6.8 billion.
Oxford Nanopore Technologies (market cap: £4.9 billion)
Oxford Nanopore Technologies is a spin-off of the University of Oxford and was founded in 2005. The company listed on the LSE with shares priced at 425p – it was valued at £4.9 billion at the end of its first trading day on 30 September 2021.
Oxford Nanopore Technologies develops products that are used to analyse DNA, RNA, proteins and small molecules. These products can be applied in scientific research, crop science and more. The company’s also produces products that track Covid-19 variants.
Cazoo (market cap: $4.5 billion)
Cazoo is a British online car retailer that enables customers to complete used car purchases digitally. Customers can then choose to collect their cars or have them delivered in the UK by Cazoo.
Cazoo listed on the NYSE via a SPAC, AJAX I Acquisition Corporation, on 27 August 2021. The SPAC deal raised around $1 billion at the time of the merger, valuing it at around $4.5 billion. While impressive, this was significantly less than its $7 billion valuation upon the announcement of its AJAX SPAC merger earlier in 2021.
The company also launched in France and Germany recently, part of the first steps in their reportedly Europe-wide expansion.
Cazoo’s Q2 2021 results were also sunny, including a gross profit of $11.1 million. Overall, the company reported that its revenue increased by 605% year on year to $196 million.
Nextdoor (market cap: $4.3 billion)
Nextdoor is a social network platform that enables neighbours and organisations to connect about the things that matter to their communities. It operates in over 275,000 neighbourhoods across 11 countries and has, naturally, experienced accelerated growth as a result of Covid-19 restrictions and safety measures.
In July 2021, Nextdoor announced that it’ll go public via a SPAC merger with Khosla Ventures Acquisition Co II, which valued the combined business at $4.3 billion. The merger agreement came with a $270 million investment by Baron Capital Group.
Nextdoor went public via the SPAC merger on 8 November 2021, with the company’s stock price soaring 33% on the day. However, by 7 December 2021, the company’s share price had fallen by more than 45% since its November listing.
Krispy Kreme (market cap: $2.7 billion)
Krispy Kreme, the international franchise giant that produces and sells doughnuts (retail and wholesale), went public for the second time on 1 July 2021. The company’s first listing was in 2000 – it then returned to private ownership in 2016.
Krispy Kreme, which also sells coffee and sweets, sold its shares on the public market for an initial price of $17 per share. They raised $500 million and had a valuation of $2.7 billion at the end of its first trading day on the Nasdaq.
Virgin Orbit (market cap: $2.2 billion)
Owned by rebel billionaire entrepreneur Sir Richard Branson, Virgin Orbit is a subsidiary of Virgin Group, alongside other companies such as Virgin Galactic (from which it was spun off), Virgin Active and Virgin Hotels.
Branson’s second space company listed on the LSE on Thursday 30 December 2021. Far from the out-of-this-world $483 expected at its debut, Virgin Orbit raised less than half of its target – just $228 million. It’s current market cap is around $2.2 billion.
Made.com (market cap: £775.3 million)
Made.com uses artificial intelligence (AI) to gauge whether its items are likely to sell by utilising existing customer data, eg online reviews. This, in turn, is said to make supply and demand more balanced, meaning lower prices for customers.
Customers can make purchases online, an alternative to the company’s networked showrooms across Europe for on-site sales.
Made.com listed on the LSE in June 2021. The initial price per share was 200 pence, which gave the company a valuation of £775.3 million. Made.com raised around £100 million in its IPO.
LADbible Group (market cap: £360 million)
LADbible Group (LBG) is a digital publisher with content aimed at young adults, such as viral videos, trending content and the latest in news. The company was founded in 2012 by Solly Solomou and Arian Kalantari. Ever since, it’s seen tremendous growth internationally, garnering over 28 billion views annually.
Up to December 2020, the company’s revenues had grown at a compound annual growth rate (CAGR) of 35%, reaching about £30 million.45
LGB scored a successful IPO on 15 December 2021, having floated £360m on the LSE’s Alternative Investment Market (AIM) for small and medium-sized growth companies, finishing 14% up at market close that day.
How to get exposure to IPO stocks
Our exclusive grey markets enable you to speculate on a company’s market cap before it lists on a stock exchange.46 You’ll ‘buy’ (go long) if you think the company’s market cap will be higher than the grey market price at the end of the first trading day, or ‘sell’ (go short) if you think it will be lower.
To start trading grey markets, open an IG trading account.
Primary market: buying at the IPO price
If a company has filed for an IPO and you want to invest in the stock, you can subscribe to the IPO ahead of the offering with us through PrimaryBid.47 By subscribing to the IPO, you’ll receive a stock allocation on the primary market, at the same time and for the same price as institutional investors. This means you can take your position without having to wait for the secondary market to open.
You can access the primary market by creating a share dealing account with us – which you can use to log into PrimaryBid. Note that this is only available for UK IPOs.
Create a share dealing account to get started
Secondary market: buying the stock after the IPO – investing or trading
Once the stock has listed, the secondary market will open, which is where individual investors exchange the stock between themselves.
- It usually takes a few hours for stocks to be available after a US IPO, as is the case with all brokers
- For UK IPOs, stocks should be available to trade from 8am on the day of the listing
- All other IPOs we offer should be available right away, from the time the exchange opens on the day of listing
There are two ways for you to take a position on the secondary market following an initial public offering. You can:
- Invest in the company’s shares by share dealing
- Trade on the company’s share price with spread bets or CFDs
Trading vs investing in IPO shares
When trading a company’s shares with us, you can speculate on the underlying market price with spread bets and CFDs. You won’t take ownership of the shares, so you can speculate on both rising and falling prices, and get certain tax benefits.48
You’ll only need a small deposit – known as margin – to get full market exposure. Trading on leverage can magnify your profits, but it can also magnify your losses, making it important to have a suitable risk management strategy in place.
When investing in shares with us, you’ll use a share dealing account to buy and sell the underlying stock. Because you’ll own the shares, you can only make money if the share price goes up – but you would also be entitled to any dividend payments that are made, and you’ll have shareholder rights.
To open a share dealing position, you’ll need to put down the full value of your investment. When investing, you’ll never lose more than this initial outlay.
Get the latest IPO news
Last updated: 07 June 2022
How can you trade upcoming IPOs?
With us, you can trade upcoming IPOs before the listing – if a grey market is available. A grey market enables you to speculate on the company’s share price before the IPO.
If we offer a grey market, the price will be based on our prediction of the company’s market cap at the end of its first trading day. You’d ‘buy’ if you think the market cap will be higher than the grey market price at the end of the first trading day, or ‘sell’ if you think it will be lower.
How soon can you buy and sell IPO shares?
You can buy and sell IPO shares as soon as the company lists on the stock market. You can either speculate on share price movements by spread betting and CFD trading, or you can buy shares outright by share dealing.
What are the risks of trading or investing in an IPO?
There is risk in all trading and investment activity. IPOs have additional risks, which include:
- Having inadequate information about the company can mean that details that might affect the share price are missed, eg lack of research such as fundamental analysis and staying up to date with the latest news about the company
- Little to no trading history to assist in making informed decisions
- High market expectations that do not materialise
- Companies not meeting their target valuations
By staying informed about the company and all details that might affect its share price, you’ll be avoiding risks that could affect your positions. In the case of IPOs, useful documents include company prospectuses and admission documents.
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Sources and Footnotes
1 CNBC, 2022
2 Retail Gazette, 2021
3 Reuters, 2021
4 Finextra, 2022
5 Bloomberg, 2021
6 Financial Times, 2021
7 Motley Fool, 2022
8 Car Scoops, 2021
9 The Times, 2021
10 Financial Times, 2017
11 Financial Times, 2021
12 The Fintech Times, 2021
13 CNBC, 2021
14 The Telegraph, 2021
15 Business Live, 2022
16 Sky News, 2021
17 Kalkins Media, 2021
18 GP Fans, 2021
19 Reuters, 2021
20 Air Insight, 2022
21 Nasdaq, 2022
22 Yahoo Finance, 2020
23 ZDNet, 2022
24 The Times of Israel, 2021
25 The Information, 2021
26 DW, 2020
27 Futorium, 2021
28 Forbes, 2021
29 Forbes, 2022
30 Forbes Adviser, 2021
31 CNBC, 2021
32 The Guardian, 2021
33 Forbes, 2021
34 Green Queen, 2021
35 Venture Beat, 2021
36 Tech Crunch, 2021
37 Tech on Show, 2021
38 Reuters, 2021
39 Reuters, 2022
40 CNBC, 2021
41 Autoblog, 2021
42 Reuters, 2021
43 Automotive News Europe, 2021
44 Reuters, 2021
45 Sky News, 2021
46 We do not offer grey markets on all IPOs.
47 Not all subscriptions will be available with PrimaryBid. Sign up for PrimaryBid and enable push notifications in their app to be alerted to new offerings.
48 Tax laws are subject to change and depend on individual circumstances. Tax law may differ in a jurisdiction other than the UK.