Trends in Technology
According to Barrons, over 1,000 companies went public in 2021, making it the busiest year for stock markets since the ‘90s dot-com boom. As of December 31st, 1,006 initial public offerings (IPOs) entered the market and raised over $315 billion, shattering the 1996 record of 848 companies going public in a single year. The Nasdaq syndicate alone registered 410 IPOs in the first two quarters of 2021, indicating a surge in high-tech and special purpose acquisition companies (SPACs) opting for public trading.
This recent rise in IPOs has been driven by several factors, such as the ultra-low interest rates during the COVID-19 pandemic, the growing need for additional cash infusions to finance new initiatives, and rapidly changing investor sentiment following the vaccine drives. Many companies also got inspired by others and worked up an appetite for going public. A great example of this is Airbnb pulling off a successful IPO after most people thought the pandemic would bury it into the ground.
So, if you’re a savvy investor looking to diversify your portfolio with a trending initial public offering, check out the 6 most fascinating IPOs of 2021.
The Biggest Public Market Debuts or Initial Public Offerings (IPOs) of 2021
Roblox is one of the most popular online gaming and communications platforms worldwide, with a community exceeding 164 million monthly active users. The San Mateo, California-based company, founded by Canadian-American businessman David Bascucki, has doubled its market cap since March 2021 when it went public and is currently valued at $62.32 billion. More importantly, it boasts a 139% return since IPO, making it an excellent option for investors with experience in the gaming industry.
Coinbase is one of the world’s largest cryptocurrency exchange platforms in terms of trading volume and daily transactions. The San Francisco-based company was founded by former Airbnb engineer Brian Armstrong in 2012 and has amassed a market cap of $55.06 billion since it went public in April 2021.
In doing so, it also became the first cryptocurrency to become publicly traded and played a major role in the mainstream adoption of Bitcoin, Ethereum, Binance Coin, and other digital currencies, especially in the US and EU. From a trading perspective, Coinbase offers a unique benefit to investors by allowing them indirectly expose themselves to cryptocurrency without trading in it due to high volatility.
Robinhood, another trading app, had become one of the most-anticipated IPOs in recent years before it finally went public in July 2021. The California-based company quickly made a name for itself in the market since its inception in 2013 due to commission-free investing and a multitude of tools designed to help new stock investors learn and improve their trading.
Although the company faced extreme scrutiny when it temporarily halted purchases of volatile stocks like GameStop, which invited a series of lawsuits as investors suffered over $10 billion in financial harm. Nonetheless, the company has come back strongly and amassed a market cap of around $10.7 billion.
Rivian is one of the world’s largest electric vehicle automakers based in Irvine, California. Since its founding in 2009, the company has become a global leader in automotive technology and has surpassed the likes of Uber, Ford, and General Motors in terms of market capitalization to $104.4 billion. Rivian specializes in electric pickup trucks, SUVs, and accessories, which are rapidly becoming in growing eco-conscious communities, especially within the US.
If you’re interested in an IPO in this industry, you’d be pleased to know that it’s currently offering over 50% returns since going public in November 2021. However, with the global shortage of silicon chips, maintaining production and scalability is becoming a growing concern along with the growing competition.
5. Doximity Inc.
Doximity is a digital platform designed to provide US healthcare professionals the tools needed to collaborate with colleagues and staff as well as coordinate patient care. In the post-pandemic world, it has become one of the most popular solutions in the market for conducting virtual patient visits and staying up to date with the latest developments and research in the industry.
Today, over 80% of US physicians use the platform, taking the company’s revenue to a whopping $206.9 million in 2021. Due to its accelerated growth during the pandemic, the company decided to go public in June 2021. Today, it has a market cap of nearly $13 billion and the IPO is offering over 159% returns for $26 per share.
Grab is a Singapore-based Chinese ride-hailing, food delivery, and digital payments service with an IPO price of $13.05, making it one of the most affordable options for new or international investors looking to diversify their portfolios.
The company is currently valued at over $22 billion and backed by investors, such as Emtek Group and Experian Ventures. Moreover, it is also one of the latest and only Southeast Asian companies in 2021 to go public.
Investing in initial public offerings has become a popular practice in the trading world, especially for savvy investors looking for early-bird benefits through investing in stocks with high growth potential. Since many of these stocks are volatile, they’re relatively cheaper than their counterparts. However, they still belong to some of the most popular companies in different industries.
As you can see, our top picks of the most fascinating IPOs of 2021 reflect several major themes or industries most investors have been focusing on in recent years (especially since the pandemic), such as cryptocurrency, healthcare, transportation, and gaming. However, we recommend learning more about these companies before splashing your cash.
For more information related to business trading, technology and practices, visit Percento Technologies today.