2016 has been a slow year for IPOs – the slowest, actually, since the recession, due to various economic and political uncertainties. However, investors are excited for 2017 as there will be less volatility and higher valuations. Here are the IPOs to watch out for next year:
A message on the immensely popular app Snapchat may only last for five seconds, but Snap Inc, the parent company, has filed for an IPO which could happen at a whopping possible valuation of $25bn. At the currently expected valuation, Snap would be the largest US-listed tech IPO since Alibaba Group‘s $70bn IPO in 2014.
This data analytics company co-founded by Peter Thiel has been avoiding going public for a long time, but now concerned stakeholders and employees are clamouring for an IPO. Palantir is valued at $20bn, and would be one of the hottest IPOs if it decided to file.
This company may produce light and delicious Greek yoghurt, but its borrowings have been anything but, despite its large revenue of $1.6bn. It may go public due to its increasing need for funds and it has been valued at $5bn.
Airbnb is one of the most highly valued US startups (worth $30bn) as investors are hungry for a potential IPO. It is also pretty popular among venture capitalists. Its CEO Brian Chesky did say that they were in no rush to go public, though.
The chances of this company going public are pretty high. One reason for this is that, in early 2016, Spotify raised $1bn in convertible debt at an $8.5bn valuation on the promise that its new investors will receive a 30% discount on shares when it files for an IPO. The terms make the interest rate rise by 1% every six months until it either reaches 10% or files for an IPO. Increased competition from Apple, Pandora Media etc. and sizeable royalties paid to artists mean that more funding may be needed in the future, too.
This media company made lists all the rage and is at the spearhead of shifting journalism from paper to cyberspace. In 2015, its CEO Jonah Peretti pointed out Buzzfeed‘s aim to go public. With a valuation of $1.7bn and 200 million monthly visitors, look forward to this IPO in 2017.
Pinterest is valued at $11bn. It very recently welcomed a brand new (and its first) CFO, Todd Morgenfeld, who used to be the VP of finance at Twitter. It can reach out to a huge audience with varied interests, which increases its prospective revenue. All this puts Pinterest in a fantastic position to go public.
MapR is another data analytics company which is planning to go public middle of next year. It has pretty stable revenues and has been raising millions from investors and firms.
The cloud storage company began consulting with advisors about a potential 2017 IPO. It is valued at $10bn, so it is one of the most anticipated IPOs of next year. One issue crops up, though, which is Dropbox‘s losses.