The coronavirus pandemic has triggered a public listing rally in 2020. The IPOs frenzy is unlikely to die down, and instead expected to continue in 2021. Yahoo compiled several potential IPOs to anticipate in 2021. Find out below!
Roblox
Founded in 2004, the online gaming platform currently values at around $4 billion. Roblox is a popular gaming platform around children, especially during the pandemic-led lockdowns. As of September, Roblox reported to have around 31.1 million daily active users. The figure surged 82% from the same period of the previous year.
Roblox also revealed to have hit $589 in revenue, though the company still hasn’t managed to profit off the game. Though Roblox is still losing money, Kathleen Smith, IPO ETF manager at Renaissance Capital is confident that the company will have investors’ attention. Roblox’s positive cash flow and $1 billion-plus IPO are enough reasons for the company to receive some interest.
Affirm Holdings
Affirm Holdings is one of the companies which has delayed its IPO from December 2020 to somewhere around January 2021. Founded in 2012, the company recently has been receiving spotlight as a pay later service provider with 0% interest. Affirm Holdings also gives simple interest loans for consumers who are looking for daily necessities or amenities.
Similarly, Affirm Holdings has not generated profit over its 7 years of operation. Yahoo reported a $120.5 million and $112. million net losses in 2019 and 2020 respectively. However, backed by Paypal co-founder Max Levchin as its founder, the IPO is predicted to raise millions to billions of dollars.
Atotech
Atotech specializes in chemicals and communication infrastructure as well as smartphones equipment production. According to Yahoo, the German-based Atotech reported around $23.7 million net losses in 2018 and $1.2 billion in revenue. However, the company recorded a $12 million income with $877 million in revenue in the nine months ending in September. With the record, the firm is expected to hit $1 billion dollars in its IPO deal.
Unexpectedly, technology companies’ IPOs are not the only ones worth to watch for in 2021. Several instances may affect whether a company’s IPO is promising or not. One thing for sure, always finds out about the company first before you invest in one!
Read also: Everything to Know About IPO Investing
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