Promising new IPOs are once again on everyone’s mind after a healthy first half, which saw 96 IPOs registered in the U.S., with 66 IPOs filed on the Nasdaq alone, netting $8.7 billion, clearly indicating investor confidence is on its way back.
IPOs are sluggish in Asia-Pacific but growing in the Americas and EMEIA (Europe, Middle East, India and Africa). Global IPO volumes fell 12% in the first half of 2024, while proceeds fell 16% year-over-year due to reduced Asia-Pacific activity.
The message is clear: America is still the place to raise IPO funds. Biotech alone witnessed 10 deals for $1.6 billion in Q1 2024. Rising equity markets and investor appetite for large, well-publicized mergers back this comeback; seven Q1 2024 IPOs raised above $500 million each in Q1’24.
Tempus AI (NASDAQ:TEM), a healthcare technology startup, surged dramatically after its Nasdaq IPO, as did Reddit (NYSE:RDDT), which raised $748 million in its IPO.
The 2024 IPO market should be busy, according to Renaissance Capital; 120 to 170 IPOs might raise $20 to $45 billion. Thus, promising new IPOs are ones to watch out for. For our analysis of promising new IPOs, we’ll concentrate on American markets due to their size and performance this year.
Stripe
Stripe might debut on the U.S. markets in either 2024 or 2025, with a decision expected within the year, company founders have informed employees.
After Stripe purchased employee stocks worth over $65 billion in 2021, the firm was valued at $95 billion, notwithstanding market fluctuations. Stripe’s IPO might raise $2.5 billion at a value of $55 to $60 billion.
Over 21 rounds, Stripe has funded $9.4 billion, including $6.5 billion in 2023. The company has many business divisions after 67 investments, including recent ones in Remark and Vengo AI.
To develop U.K. businesses and services, Stripe released an open banking-powered payment method. Its sophisticated fraud prevention and detection ensure payment security and timeliness, giving it an additional edge in the new market.
As their main international payments partner, Stripe has partnered with Accor (OTCMKTS:ACCYY) and extended its enterprise offerings to France.
Tracking behind PayPal (NASDAQ:PYPL) but ahead of Block (NYSE:SQ) and Adyen (OTCMKTS:ADYEY), Stripe has 17.4% of the U.S. payment processing market. The firm processes over $1 trillion in payments in 2023, making it a worldwide player.
Finally, over 50 product announcements came from the 2024 Stripe Sessions. Connect advances payment and platform technologies driven by artificial intelligence. In 23 countries, Stripe debuted Stripe Reader S700 using Oracle Opera and Adobe Commerce.
Skims
Skims, a shapewear and clothing brand co-founded by socialite and businesswoman Kim Kardashian, is valued at $4 billion after closing a $270 million funding round.
This makes it a sought-after possible choice among upcoming new IPOs. In five fundraising events since 2019, the brand has raised $701 million.
Regarding going public, Skims does not have a timetable available. Former Nike (NYSE:NKE) executive Andy Muir was appointed chief financial officer last year; this action was viewed as a prelude for the IPO. That moment, however, has passed.
Still, with $750 million in sales and a net profit of $190 million in 2023 — 50% higher than in past years — it is becoming impossible to overlook Skims among perhaps exciting new IPOs.
Apart from getting ready for its IPO, Skims is establishing big stores in Los Angeles and New York City to really strengthen its brand.
The first TV commercial Skims produced, “SKIMS Lab,” also appeared at the 2024 Oscars. Kim Kardashian will highlight the company’s exclusive shapewear in upcoming commercials. Not only are well-known “Fits Everybody” basketball players part of a new WNBA alliance for the brand, but the company also designed a limited edition Team U.S.A. line-up just in time for the 2024 Olympics.
StubHub
Targeting a value of roughly $16.5 billion, StubHub is getting ready for its IPO, likely in late summer 2024. Goldman Sachs (NYSE:GS) and JPMorgan (NYSE:JPM) reportedly have already delivered secretly to regulators paperwork related to StubHub going public.
From 2000 until today, StubHub has been a top live entertainment ticket marketplace. EBay (NASDAQ:EBAY) purchased this site in 2007; Viagogo purchased it for $4.05 billion in 2019. StubHub is secure and simple to use, with numerous corporate and sports team relationships. Ticket selection is vast in over 90 countries.
Operating in a very competitive but profitable sector, StubHub is one of the most exciting new IPOs; the secondary ticket market, projected at $2.85 billion in 2023, is forecast to expand at a CAGR of 9.7% to reach $6.56 billion by 2032.
StubHub has shown a clear increase in ticket sales, especially with WNBA events seeing a 93% rise, indicating a strong resurgence and growing demand in the live events industry.
On the date of publication, Faizan Farooque 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
