A boom in U.S. initial public offerings that began in 2020 picked up steam in 2021. With stock prices at all-time highs, IPOs raised more than $142 billion in 2021, an 82.1% year-over-year increase.
There were nearly 400 IPOs priced in 2021, a 79.6% increase compared to 2020. The health care and technology sectors were particularly active in 2021, accounting for a combined 67% of all IPOs in the past 12 months, according to Renaissance Capital, a firm that tracks IPO activity.
One of the highest-profile IPOs of December was international online banking company Nu Holdings Ltd. (ticker: NU). Nu priced its $2.6 billion IPO at $9 on Dec. 8 and the stock finished the month up modestly at $9.38.
Despite ongoing concerns over inflation, supply chain disruptions and the omicron variant of COVID-19, investors will be watching to see if the IPO market will remain hot in 2022. Here are five IPO stocks to watch:
— Phoenix Motor (PEV)
— Savers Value Village (SVV)
— Chobani Inc. (CHO)
— Fresh Market Holdings Inc. (TFM)
Phoenix Motor Inc. (PEV)
Phoenix Motorcars is an electric drive system and electric vehicle (EV) maker that is being spun out of renewable energy company SPI Energy Co. Ltd. (SPI). Phoenix converts light- and medium-duty commercial vehicles from internal combustion engine (ICE) vehicles to EVs.
Phoenix Motorcars delivered its first commercial EV in 2014 and has delivered 98 total EVs as of the end of September, including 84 electric shuttle buses and 14 work and delivery trucks. Phoenix recently began production of its third-generation drivetrain, which the company says will deliver the longest electric range for any Class 4 product on the market at 160 miles. The company reported just $2 million in revenue for the 12 months ending in September 2021.
Phoenix filed its IPO documents on Nov. 29, and Renaissance Capital estimates the company could raise up to $250 million in its upcoming IPO. Phoenix has not yet announced an official IPO date, but the company plans to trade on the Nasdaq under the symbol PEV.
Savers Value Village (SVV)
Savers Value Village is the largest for-profit thrift operator in the U.S. and Canada. The company operates a total of 306 thrift stores, including popular brands Savers, Value Village, Village des Valeurs, Unique and 2nd Ave. The stores offer clothing and home goods at an average unit retail price of less than $5.
In its Dec. 22 IPO filing, Savers Value Village reported $1.1 billion in revenue for the 12 months ended Sept. 30, 2021. The company was valued at $5.4 billion during a private fundraising round in May 2020. Savers Value Village’s business was hit hard by the pandemic in 2020, reporting a $63.4 million net loss for the fiscal year ended Jan. 2, 2021. However, net income rebounded to $55.6 million in the nine-month period ended Oct. 2, 2021.
Savers Value Village has not announced an official IPO date, but the company plans to list on the New York Stock Exchange under the ticker SVV.
Chobani Inc. (CHO)
Chobani is a leading Greek yogurt brand that sells products in roughly 95,000 U.S. retail locations. The company’s key retail partners include Walmart Inc. (WMT), Amazon.com Inc. (AMZN) and Target Corp. (TGT).
Chobani’s Nov. 17 filing suggests a $100 million IPO, but Renaissance estimates the company could raise up to $1.5 billion. In July, Reuters reported Chobani’s IPO could value the company in the $10 billion range.
Chobani reported $1.5 billion in revenue for the 12 months ended Sept. 30, 2021. The company said revenue grew 5.2% from 2019 to 2020, but net losses more than tripled to $58.7 million due to heavy investments in its business.
Chobani has not yet announced an official IPO date, but it plans to list on the Nasdaq under the symbol CHO.
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Fresh Market Holdings Inc. (TFM)
Fresh Market Holdings filed its IPO paperwork way back on July 16, but investors have since had few updates on when to expect the stock to begin trading.
The gourmet grocery store went public back in 2010 but struggled to fend off competition from Kroger Co. (KR), Whole Foods and others. Apollo Global Management Inc. (APO) took Fresh Market private in 2016 in a $1.4 billion buyout that valued the company at just a 30% premium to its IPO price six years earlier.
After five years restructuring its business, Apollo now plans to take Fresh Market public once again. Securities and Exchange Commission filings suggest the IPO could raise up to $100 million, but Renaissance Capital estimates Fresh Market will raise closer to $250 million.
Fresh Market generated $447 million in revenue in the third quarter of 2021, up 1.7% year over year and 26% from 2019 levels, according to a Bloomberg report. The company plans to list on the Nasdaq under the ticker TFM.
Popular social media platform Reddit made waves on Wall Street in December when it announced the company had confidentially filed IPO documents.
Given the IPO filings aren’t yet public, investors have limited insight into Reddit’s finances at this point, and there’s no indication of the potential size of the IPO or Reddit’s preferred stock ticker.
In December 2020, Reddit said it had 52 million daily users. The company raised $700 million via a private fundraising round in August 2021 that valued Reddit at more than $10 billion.
In 2021, Reddit became a somewhat controversial hub for stock traders organizing targeted buying campaigns in a handful of the market’s most heavily-shorted stocks in an attempt to trigger short squeezes.
A January Reddit IPO seems unlikely at this point. But the confidential filing suggests Reddit will likely go public sometime in 2022, and investors could get more updates in coming weeks.
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