The first half of 2024 has seen a resurgence in the IPO market, with investor confidence on the rise. In the U.S., 96 IPOs were registered, with 66 of them filed on the Nasdaq, resulting in a total of $8.7 billion in funds raised. This indicates a clear preference for American markets as a prime destination for IPOs, with Asia-Pacific experiencing a slowdown in activity.
Biotech has been particularly successful, with 10 deals raising $1.6 billion in Q1 2024. The positive trend can be attributed to rising equity markets and investor appetite for high-profile mergers. Notable IPOs in the first quarter include Tempus AI and Reddit, which raised $748 million.
According to Renaissance Capital, the IPO market is expected to remain busy in 2024, with an estimated 120 to 170 IPOs potentially raising $20 to $45 billion. With this in mind, it is crucial to keep an eye on promising new IPOs.
One such IPO to watch out for is Stripe, a healthcare technology startup that recently surged after its Nasdaq IPO. The company, valued at $95 billion, is expected to go public in either 2024 or 2025, potentially raising $2.5 billion at a valuation of $55 to $60 billion. Stripe has already secured significant funding, with over $9.4 billion raised in 21 rounds. Its expansion into the U.K. market and strategic partnerships with companies like Accor have further strengthened its position.
Skims, a shapewear and clothing brand co-founded by Kim Kardashian, is another potential IPO candidate. With a valuation of $4 billion and impressive financial performance, including $750 million in sales and a net profit of $190 million in 2023, Skims is gaining attention. While no specific timeline for its IPO has been announced, the brand’s recent expansion efforts, including the opening of flagship stores and high-profile marketing campaigns, indicate its readiness to go public.
StubHub, a leading live entertainment ticket marketplace, is also preparing for its IPO, aiming for a valuation of approximately $16.5 billion. The company has witnessed a clear increase in ticket sales, particularly in the WNBA events segment, indicating a strong resurgence in the live events industry. With the secondary ticket market projected to grow significantly, StubHub is poised to capitalize on this opportunity.