Initial public offerings (IPOs) were on hold until late May as equities collapsed into bearish territory and economists expected the worst recession in about a century. However, IPOs are back, as equities have recovered over the last few months. What should we expect for IPOs in the rest of 2020?
“The resurgence was never going to be led by one massive deal, David Ethridge, US IPO services leader at PwC, tells Business Insider.
"It's difficult to find precedent for blockbuster IPOs, and investors struggle with pricing such offerings. Instead, a smattering of IPOs from small and profitable companies gave investors something familiar and broke the ice for other debuts, he said."
Key IPOs on the list for 2020
The tech IPO scene for the rest of 2020 looks strong despite the coronavirus pandemic, upcoming presidential election, and economic slump. Rackspace, which provides cloud computing services, filed its prospectus in July and started trading on August 5. BigCommerce, which provides an e-commerce platform for small- and medium-sized retailers, debuted at the same time. On its opening day, Rackspace fell 22 percent to $16.39, while BigCommerce rose more than 200 percent to $72.27.
Between June and July, Chinese cloud software developer Agora, data collector Zoominfo, online car seller Vroom, and insurance-tech company Lemonade debuted in the U.S. All of these stocks traded higher out of the gate.
Enterprise-focused companies Palantir, Snowflake, and Asana have all filed for an IPO with the SEC. Home-sharing company Airbnb filed for an IPO on August 19. Instacart, which delivers groceries, and DoorDash, which delivers food, are also planning to go public.
On August 21, biotechnology company Kymera Therapeutics debuted on the Nasdaq under the "KYMR" symbol. On opening day, the stock rose about 66 percent to $33.25, up from $20 when it began trading. The company said that it raised about $173 million in the IPO by offering 8.7 million shares at $20.
When is the Airbnb IPO date?
Last week, Airbnb filed confidential paperwork with the SEC to go public. The company could go public in 2020 despite being hit hard by the coronavirus pandemic. Airbnb, planning to drastically reduce costs and lay off a quarter of its workforce, is eyeing a traditional IPO. The announcement didn’t reveal the date of listing.
When is CureVac going public?
On August 14, CureVac debuted on the Nasdaq exchange under the "CVAC" symbol. On its opening day, the stock rose about 250 percent to $55.90 from its introductory price of $16 per share. CureVac is a biotechnology company developing a COVID-19 vaccine. The company raised nearly $213.3 million in its IPO.
When is Ant Group going public?
Ant Group, the fintech arm of Chinese e-commerce company Alibaba, is planning to list its stock on the Hong Kong and Shanghai exchanges. Ant Group has chosen China over the U.S. for its IPO. The announcement didn’t reveal the date of listing. Market experts expect the company to go public this year. The company is planning to raise about $30 billion in its IPO.
When is the Snowflake IPO date?
In June, Snowflake, a cloud data platform, announced that it had confidentially filed for an IPO with the SEC. The announcement didn’t reveal the date of listing. Market experts expect the company to go public in the third quarter. Snowflake is expected to have a valuation of $20 billion at its IPO.
When is the DoorDash IPO?
DoorDash is planning a traditional IPO in the fourth quarter, according to Bloomberg. Earlier this year, DoorDash said that it had confidentially filed for an IPO with the SEC. However, the COVID-19 pandemic pushed back its listing.