Look for these companies to make their U.S. market debut by the end of March
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The IPO market (initial public offering) seems to be heating up. Adena Friedman, the CEO of the Nasdaq (NASDAQ:THEN) recently made headlines when it said nearly 100 companies had filed nondisclosure agreements to pursue initial public offerings this year. If true, it would mark a significant turnaround in new share issuance, which has been stagnant over the past two years. In fact, 2022 and 2023 were the slowest period for IPOs in more than 40 years, with only nine technology IPOs taking place in 2023 and six in 2022, compared to 121 such deals in 2021 during the last bull market. Friedman and others expect a recovery this year amid more favorable market conditions, which include falling inflation and interest rates and a stock market that is currently at an all-time high. Here are three stocks from the 2024 IPO Market Outlook.
IPO market 2024: Reddit
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According to media reports, it is an American social media platform Reddit is preparing to go public in March this year. It would be the first stock offering by a major US social media company since then Pinterests (NYSE:PINS) Market debut in 2019. Reddit launched in 2005, operates online message boards and generates most of its revenue from online advertising. It hasn't made a profit yet. However, the company, which had a valuation of $10 billion in previous funding rounds, intends to sell about 10% of its shares.
Reddit has wanted to hold its IPO for three years, but has repeatedly delayed it due to the Covid-19 pandemic and the bear market in 2022. The company reportedly plans to file its regulatory filing in late February, hold its roadshow in early March, and hold its IPO by the end Complete in March this year. Reddit will likely list its shares on the Nasdaq exchange, although the ticker symbol the company plans to use is currently unknown.
Amer Sports
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Amer Sports, best known as the maker of Wilson tennis rackets, plans to go public in the U.S. by the end of February at a valuation of $8.7 billion. The Helsinki, Finland-based company, which also makes Arc'teryx running shoes and Atomic skis, is linked to several high-profile professional athletes, including tennis player Roger Federer and NFL quarterback Russell Wilson. The company plans to sell 100 million shares on the New York Stock Exchange at a price between $16 and $18.
Founded in 1950, Amer Sports operates three business segments and is home to sports and outdoor brands including Salomon and Peak Performance. Financial details have yet to be released, but a previous funding round valued Amer Sports at nearly $9 billion. The company plans to use the ticker symbol “AS” on the New York billboard. An exact date for the IPO has not yet been set, but Amer Sports has said it will price the share sale by the end of January and begin trading in February this year.
Shein
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Chinese fashion company Shein filed for an IPO in the US before Christmas last year. The hugely popular retailer in Asia was last valued at $66 billion and is expected to begin trading at the end of the first quarter. Shein has grown rapidly due to the popularity of its clothing designs and affordable prices. The Singapore-headquartered company has reportedly hired new employees Goldman Sachs (NYSE:G.S) And Morgan Stanley (NYSE:MS) is supposed to lead the IPO.
However, recent reports suggest that the company, which continues to have a large presence in China, is seeking approval from regulators in Beijing for a US IPO. In recent years, officials in China have thwarted plans for Chinese companies to list stocks on foreign exchanges. Whether the IPO will take place, its exact date and dollar value are not yet known. However, if it happens, Shein's IPO could be one of the biggest of the year.
At the time of publication, Joel Baglole did not hold, directly or indirectly, any positions in the securities mentioned in this article. The opinions expressed in this article are those of the author and are subject to InvestorPlace.com's publication policies.
Joel Baglole has been a business journalist for 20 years. He was a reporter at The Wall Street Journal for five years and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.
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