In this article, we will look at the 5 hottest upcoming IPOs to watch in 2022. If you want to explore similar companies that have promising track records and the potential to go public successfully, you can also read 10 Hottest Upcoming IPOs to Watch in 2022.
5. Chime
Potential IPO Valuation: $25 Billion
Expected Date of IPO: Second Half of 2022
Chime is an American fintech company that provides fee-free mobile banking services. Chime does not charge monthly or overdraft fees, and also does not have traditional banking requirements such as an opening deposit or minimum balance to open a free checking account. The company was founded by Chris Britt and Ryan King in 2012 and is headquartered in San Francisco, California.
Chime has been seeking strategic M&A to grow its operations. In 2018, Chime acquired Pinch, a company that provides services for people to enhance their credit scores by timely reporting of rent payments to credit bureaus. In August 2021, Chime acquired Charlie Finance, a financial services start-up that helps individuals track and manage their debt.
Chime is among the hottest upcoming IPOs in 2022. The company had a successful funding round in August 2021 and raised $750 million, bringing its valuation to $25 billion. The company was expected to IPO in the first quarter of 2022. However, Chime delayed its plans to IPO and said that it will have a public debut in the second half of 2022 as the company is working on adding new features related to lending and investing to its platform.
4. Epic Games
Potential IPO Valuation: $31.5 Billion
Expected Date of IPO: Second Half of 2022 or Early 2023
Epic Games is a leading American video game and software company that is most famous for Fortnite. The company was founded in 1991 by Tim Sweeney and is headquartered in Cary, North Carolina, with over 40 offices worldwide. Epic Games has released a range of successful titles over the years, including the Gears of War series, Infinity Blade, and Bulletstorm.
Epic Games is a major player in the video game industry and is also hyperactive in the building of the metaverse. In April 2022, Epic Games announced that it has raised $2 billion from Sony and Kirkbi to build the metaverse, bringing its valuation to $31.5 billion. The company has raised approximately $4.4 billion since its founding.
3. Databricks
Potential IPO Valuation: $38 Billion
Expected Date of IPO: Second Half of 2022
Databricks is an American enterprise software company that provides solutions for data engineering, data science, and business analytics. Databricks also offers a platform for machine learning, data storage & processing, streaming analytics, and business intelligence. The company was founded in 2013 and is headquartered in San Francisco, with operations in Canada, the United Kingdom, the Netherlands, Singapore, Australia, Germany, France, Japan, China, India, and Brazil.
In February 2022, Bloomberg reported that Databricks has raised $3.5 billion via funding rounds led by Morgan Stanley, Franklin Templeton, Amazon Web Services, and Andreessen Horowitz among other investors, bringing its valuation to $38 billion. Databricks is among the most valuable startups in the world and has over 7000 corporations across the globe using its platform.
2. Mobileye
Potential IPO Valuation: $50 Billion
Expected Date of IPO: Second Half of 2022
Mobileye develops autonomous driving technologies and advanced driver-assistance systems including cameras, computer chips, and software. The company went public in 2014 and was acquired and taken private by Intel Corporation (NASDAQ:INTC) in 2017 for $15.3 billion, roughly 3 times its IPO value. The company has collaborated with BMW, Volkswagen, General Motors Company, and Ford Motor Company, and integrated its technologies into their vehicles.
Mobileye was a successful investment for Intel Corporation (NASDAQ:INTC). In 2021, Mobileye accounted for $1.4 billion of Intel Corporation’s (NASDAQ:INTC) annual revenue, up 43% year over year. In December 2021, Intel Corporation (NASDAQ:INTC) announced that it plans to take Mobileye public for a valuation of $50 billion in the middle of 2022.
1. Stripe
Potential IPO Valuation: $74 Billion
Expected Date of IPO: Second Half of 2022
Stripe, Inc. is an Irish-American financial services company that develops and offers payment processing software and APIs for e-commerce and mobile applications. The company was founded in 2010 and has two corporate headquarters, one in San Francisco, United States, and the other in Dublin, Ireland.
The pandemic fueled online shopping, which was positive for Stripe. For 2021, the company reported gross revenue of roughly $12 billion, up 60% year-over-year, and net revenue of approximately $2.5 billion. The company was also EBITDA profitable.
In March 2021, Stripe raised $600 million from funding rounds led by Ireland’s National Treasury Management Agency and Fidelity Investments. The company was valued at $95 billion after the round. However, due to a sell-off in tech stocks in early 2022, the company slashed its internal valuation by 28%, bringing it to $74 billion in June 2022.
You can also take a look at 10 Most Successful Tech IPOs of 2021 and 10 Most Anticipated IPOs of 2022.
