- Discord — Innovative online communication platform. The company already has large customer base and is widely accepted across industries
- Databricks — The company’s software structures data on the cloud storage platform. It is currently valued at $38 billion
- Impossible Foods — Offers plant based substitutes for meat lovers
- Instacart — The platform facilitates on-demand delivery of food and other products
After a blockbuster year of companies going public, 2022 is unlikely to produce anything near the volume of initial public offerings.
Almost 1,033 companies went public in the United States in 2021 raising a $286 billion, as per the data provided by Nasdaq, an 85% increase over the previous year. special-purpose acquisition companies played a prominent role in achieving the IPO record, representing over 59% of total new listings.
Some of the top listings included electric car maker, Rivian Automotive (NASDAQ:RIVN), online video game platform provider Roblox (NYSE:RBLX) and financial technology firm Coinbase Global (NASDAQ:COIN), to name a few.
And, despite this year’s slow down, 2022 is also expected to record several IPOS. Here are four most-anticipated upcoming IPOs that investors must consider keeping in their second-quarter watchlist.
These IPOs have been selected for their innovative offerings and future growth prospects. Based on these companies’ valuations and wide customer acceptance, they have potential to prosper in their respective fields.
IPO Watchlist: Discord
Launched in 2015, Discord is one of the most innovative online communication platforms that connects people with similar interests on various topics.
The application’s ability to provide high level of customization sets it apart from other platforms currently available in the space. The company has several competitive advantages over other group chatting platforms such as Google Meet, Salesforce.com’s (NYSE:CRM) Slack, etc.
Discord’s monthly active users (MAUs) have increased from 56 million in 2020 to 140 million in mid-2021.
Beyond gaming, Discord plans to expand into many other categories, including communities for politics, sports, entertainment, investing, online education and more.
Considering the traction and ease of use, Microsoft (NASDAQ:MSFT) offered to acquire Discord in early 2021 for a reported $10 billion. But the late-stage venture funded firm turned down the deal and plans to pursue an IPO this year.
The company is currently valued at $15 billion, post its $500 million in funding in September 2021. This is higher than $7.3 billion valuation in its previous funding round in July 2020.
However, its valuation is expected to be even higher than $15 billion at the time it offers its securities to the public.
Databricks is focused on providing big data analytics on cloud-based data platform. The company’s software allows organizations to structure data on the cloud-storage platform. The software addresses the need to organize large unstructured data to gain insights and develop artificial intelligence (AI) solutions.
The company’s ability to convert and handle large volumes of data has enabled it to attract more than 5,000 customers across industries. Some of its clients includes large corporations such as CVS Health (NYSE:CVS), Comcast (NASDAQ:CMCSA), Condé Nast and Nationwide Insurance.
Databricks is currently valued at $38 billion, post its latest funding round in August 2021, when the firm raised $1.6 billion. Overall, the data storage provider has raised about $3.6 billion since inception. Some of the eminent investors include Microsoft, Alphabet’s (NASDAQ:GOOGL, GOOG) CapitalG and the cloud juggernaut AWS unit of Amazon (NASDAQ:AMZN).
The company is expected to file for its IPO sometime in 2022. Investors should keep a watch on its innovative solution provider.
IPO Watchlist: Impossible Foods
Founded in 2011, Impossible Food focuses on making plant-based substitutes for meat, dairy and fish products.
Like its already-public peer, Beyond Meat (NASDAQ:BYND), the company’s innovative food aims to provide vegetarian options to meat lovers in an effort to make the food industry more sustainable going forward. Also like BYND stock, this one is among the industry’s most anticipated IPOs.
Its veggie burger has gained significant acceptance. Impossible Food products are already sold in 22,000 grocery stores and 45,000 restaurants across the United States. Baja Fresh, a Mexican restaurant-chain, has added the company’s products to its menu worldwide.
As of November 2021, Impossible Foods was valued at $7 billion, as plant-based food investments tick all of the right boxes for health, climate awareness and culinary curiosity.
Impossible Food has attracted funding from an impressive roster of investors. The list includes Google Ventures, Khosla Ventures, Mirae Asset Global, and Coatue. Also, the firm has gained popularity among celebrity investors such as Serena Williams, Jay-Z, Katy Perry, Jaden Smith and Bill Gates.
The company is expected to go public at more than $10 billion valuation in 2022 via either SPAC or IPO. In November 2021 management plans to publicly list Impossible Foods but is yet to finalize the dates.
Instacart is expected to be one of the largest IPOs of 2022.
Established in 2012, the company facilitates on-demand delivery of groceries and other products through its application. Basically, the app connects contractors with customers.
Instacart gained huge success with onset of novel coronavirus. The government-imposed lock downs to curb Covid-19 infection led to a huge demand for app-based delivery service. As such, the company has scaled its operations to include 400 retailers in 30,000 stores across the United States and Canada to cater to 80% of the households in the U.S. and 70% in Canada.
Currently, Instacart is funded by 40 investors. The management is preparing the company for an IPO with an estimated valuation of $24 billion, which is down from $39 billion envisioned as recently as year-end 2021.
Investors should keep this stock on their watchlists based on its robust growth.
On the date of publication, Sakshi Agarwalla 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.