If you haven’t already done so, 2023 is the year to take advantage of some of the best opportunities to invest in IPOs. These public offerings are typically a great way to gain access to high-growth, highly-valued companies. However, it’s important to keep in mind that IPOs can be risky and that they tend to move quickly.
Several high-flying tech companies that went public in the past decade have now dropped to much lower prices than they were when they were first listed. That’s why some investors are speculating that the market will see a new wave of tech IPOs in 2023, possibly beginning in the fall or at the end of 2023.
These 2023 IPOs could include startups like the social messaging app Discord and video game publisher Epic Games, which have valuations of $15 billion or more. They are expected to raise billions of dollars, according to Forbes.
Databricks – a cloud computing company that specializes in building and managing distributed data warehouses – is another promising candidate for an IPO in 2023. Its revenue is subscription-based, and it has grown its business significantly over the last two years.
Chime – a mobile banking app that offers free checking and savings accounts – is another potential 2023 IPO candidate. The company has been in the financial services space for over a decade and has grown to become one of the largest fintech providers in the United States.
Reddit – a popular social media website with a large user base and a strong presence on the Internet – has been seeking an IPO for a while. The company’s growth has prompted a number of buyout proposals from big technology companies, such as Microsoft (MSFT +1.48%) and Amazon (AMZN -1.16%).
Houzz – an online platform that allows professional designers to manage their projects and attract the right clients – is also in the running for an IPO in 2023. Its software helps users win and win back clients, run profitable projects and deliver a standout customer experience.
Vinfast – an electric vehicle (EV) start-up based in Vietnam – is also looking to go public in 2023. Its plans to list were delayed due to various issues, but it hopes to complete the IPO in early 2023.
Shein – an e-commerce company that sells apparel and household goods – is another possible candidate for an IPO in 2023. The company has a large presence in China, and it’s popular among Gen-Z consumers.
SoftBank’s Arm – a chipmaker with a valuation of about $9 billion – may decide to list in the United States, according to Bloomberg News. The company has raised billions of dollars in private funding and has a track record of growing its businesses at a fast pace.
The IPO will be the first U.S. listing for Arm and its parent company, SoftBank Group (9984.T). It’s an exciting prospect for investors, and one that may prove difficult to navigate in an environment where tech IPOs are becoming more rare.