Top 10 IPOs to watch in 2024

After hitting a peak in 2021, the global IPO market had one of its worst years in 2022. This year wasn’t much different as IPO volumes saw a further decline of about 5% in the first three quarters of 2023. Gross proceeds also fell 32% on a year-over-year basis. Many, however, are expecting a recovery in the IPO markets in 2024. Analysts see a moderate deal volume in the first half of the year with a stronger comeback in the second half of 2024.

Here are some potential IPOs expected in 2024:

1. Shein

The fast-fashion company filed confidentially last month. Shein is touting its hopes for a valuation of as much as $90B, according to Bloomberg. Sources told the publication that the timing of the share sale remains uncertain given the market volatility. Founded in China more than a decade ago, Shein recently moved its headquarters to Singapore.

2. Reddit

Reddit is again holding talks with potential investors for an initial public offering for the social media company, according to people familiar with the matter, as hopefuls prepare for a long-awaited reopening of the market for new listings, Bloomberg’s Amy Or, Ryan Gould, Katie Roof, and Gillian Tan reported. The company is said to be weighing an IPO as soon as in the first quarter.

3. Panera Bread

Panera Bread’s run as a private company may be coming to an end after just four years. The company filed initial paperwork for a public offering in early November and cut 17% of its staff in preparation for the move.

4. Canva

The graphic design software company, which has been competing with the likes of Adobe (ADBE), might make its public debut next year. Canva has already amassed over 135M monthly active users, and unlike many other startups, it’s already profitable.

5. New Era

New Era Cap, a supplier of major U.S. sports league headwear, has kicked off preparations for an initial public offering in New York that could value it at $4B to $5B, Reuters reported recently, citing people familiar with the matter. New Era, which makes caps affiliated with the NFL, MLB and NBA, has invited investment banks and law firms to pitch for roles in its stock market debut, the sources said.

6. Data Bricks

Another highly anticipated IPO is that of the data and analytics company competing with Snowflake (SNOW). With early investment from Nvidia (NVDA), Databricks has cultivated a loyal following within the open-source community.

7. Stripe

On the financial side, Stripe is expected to go public in 2024. The company founded over 10 years ago by brothers John and Patrick Collison had set a one-year timetable to decide on whether to go public back on January 26, 2023.

8. OpenAI

With its leadership drama hopefully left behind, the ChatGPT startup could make its public debut as early as 2024. Just before Christmas, Bloomberg’s Gillian Tan, Edward Ludlow, and Shirin Ghaffary reported that OpenAI was in early discussions to raise a fresh round of funding at a valuation at or above $100B, a deal that would cement the ChatGPT maker as one of the world’s most valuable startups.

9. Fanatics

The popular sportswear manufacturer is slowly moving toward an IPO. Currently valued at $31B, Fanatics has held investor meetings this year, including with former New England Patriots and Tampa Bay Buccaneers’ quarterback Tom Brady.

10. Discord

While nothing has been formally said, Discord’s decision back in 2021 to end talks with Microsoft (MSFT) over a $10B takeover has kept the buzz of a potential IPO alive. The company has a $15B valuation.

Article from Interactive Brokers