With markets hitting all-time highs, companies are racing to go public with IPOs (initial public offerings).
According to Bloomberg contributors Swetha Gopinath and Myriam Balezou, “An all-time high of almost $350 billion has been raised in initial public offerings in the first six months of this year, according to data compiled by Bloomberg, surpassing the previous peak of $282 billion from the second half of 2020 and enriching entrepreneurs and bankers alike.”
From here, the flood of IPOs is expected to stay strong thanks to a strong market.
That being said, some of the top IPOs to watch for the remainder of 2021 include:
- Lucid Motors (NASDAQ:LCID)
- Renaissance IPO ETF (NYSE:IPO)
- First Trust US Equity Opportunities ETF (NYSE:FPX)
Hot IPOs: Chime.com
With online banking on the rise, Chime could be one of the fastest growing fintech stocks on the market. According to eMarketer, Chime could have up to 13.1 million U.S. account holders this year, up 30.7% year over year. By 2025, it could have 22.7 million.
“Chime has attracted hundreds of thousands of new users each month over the past year, largely because of its responsiveness to customer needs,” they added.
According to Allied Market Research, the global online banking market could be worth $31.81 billion by 2027. In 2019, it was worth about $11.4 billion.
The online grocery delivery company could be worth up to $50 billion, says Reuters. In addition, according to ResearchandMarkets, the global online food delivery market could reach $192.16 billion by 2025 from $126.91 billion in 2021.
Better, according to Mercatus contributor Mark Fairhurst, “Online grocery will account for 21.5% of total grocery sales by 2025 — an estimated $250 billion — which is more than a 60% increase over pre-pandemic estimates.”
That could help big upside for a company like Instacart. The company benefits from folks staying at home, raising demand for deliveries. The company saw revenues of $1.5 billion in 2020 and billions of dollars in gross transaction value.
Hot IPOs: Lucid Group Inc. (LCID)
Lucid Motors could be a standout winner with the electric vehicle boom under way. CEO Peter Rawlinson has said the company is on track to start production this year. Plus, it’s already accepted over 10,000 reservations for its Air electric vehicle.
In fact, as noted in a company press release, “As Lucid approaches the launch of Lucid Air in the second half of 2021, the company anticipates strong demand for its products. Lucid recently passed 10,000 paid reservations for the groundbreaking Lucid Air, including the fully-reserved Dream Edition, the Grand Touring edition, and both the Touring and Pure versions.”
Renaissance IPO ETF (IPO)
Maybe you don’t want to trade an IPO directly. You can always pick up an ETF, such as the Renaissance IPO ETF. Over the last 16 months, IPO winners and even duds have helped push the IPO ETF from the $20 to $35 range, where it spent many years, to between $55 and $75. It opened on July 28 at $62.
With this ETF, investors can gain access to the most liquid IPOs, which currently include Snowflake (NYSE:SNOW), Palantir Technologies (NYSE:PLTR), Peloton Interactive (NASDAQ:PTON), XPeng (NYSE:XPEV), Bill.com (NYSE:BILL), Li Auto (NASDAQ:LI), DoorDash (NYSE:DASH), and Airbnb (NASDAQ:ABNB) to name a few.
Hot IPOs: First Trust US Equity Opportunities (FPX)
Another hot IPO ETF is the FPX, which includes 100 of the most liquid IPOs on the market.
With FPX, winners and even duds have sent this ETF from a recent low of $54.21 to $125. Here, investors are currently exposed to stocks such as Marvell Technology (NASDAQ:MRVL), Snap (NYSE:SNAP), Uber Technologies (NYSE:UBER), DocuSign Inc. (NASDAQ:DOCU), and Zoom Video (NASDAQ:ZM).
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Ian Cooper, a contributor to InvestorPlace.com, has been analyzing stocks and options for web-based advisories since 1999.