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20 lucrative IPO stocks

investors can not wait


to buy!
The next Telsa, Amazon and Apple

EARLY INVESTORS
In 2021, IPOs in the United Kingdom and Europe have gotten off to a good
start, boosted primarily by companies that thrived during the lockdown, such
as online digital rms and gamer stocks.

FACTS TO REMEMBER

According to data firm Renitiv, European and UK stock exchanges have


raised around $10.2 billion through 16 initial public offerings so far this year,
the strongest start in the IPO industry since 2015, when $9.7 billion was
raised for the same duration.

More than two-thirds of the new listings are comprised of physical, e-


commerce, and gamer stocks, such as Moonpig, a UK online card store,
Auto1, a German online used car dealer, and Huuuge, a Polish mobile
gaming developer.

Despite concerns that the UK IPO market will suffer as a result of Brexit and
lose listings to EU exchanges, the London Stock Exchange led the way, listing
four new IPOs and two in its Alternative Investment Market (AIM) submarket.

The IPO market in the United States has also exploded this year, with a total
of $22.6 billion in deals so far.

“We have witnessed some tectonic shifts in the ecommerce landscape as a result
of Covid — things we thought would take ve years have taken ve months,”

James Fleming, global co-head of equity capital markets at Citigroup.

BACKGROUND

The emergence of a slew of tech and digital firms raises expectations that
Europe will be able to better compete with the United States, which has
long dominated these fields. According to Barry Meyers, head of UK equity
capital markets at JPMorgan, “Europe has had a shortage of these tech
companies [compared with] the US in recent years ” adding, "there is
enthusiasm at the moment because these are high-quality companies.”
SPACs, which are created to raise capital through an IPO for the purpose of
purchasing an established business, have played a significant role in US
IPOs and are now gaining traction in Europe as well. German venture capital
rm Lakestar, an early backer of digital music rm Spotify Technology, is
reportedly seeking up to $484 million in a SPAC listing in Frankfurt this year.

WHAT TO WATCH FOR

Deliveroo, a UK takeaway delivery service in which Amazon owns a 16


percent stake, plans to go public in the first quarter of this year. The
business is now worth more than $7 billion. OVH Groupe, a cloud
computing company in France that is seen as a competitor to Amazon,
plans to go public this year in Paris. Vodafone Group is preparing a $3.6
billion IPO for its German-based Vantage Towers unit in March. Vantage
Towers is a tower infrastructure platform of over 68,000 sites spanning nine
countries. According to Aloke Gupte, co-head of equity capital markets for
Europe, the Middle East, and Africa at JPMorgan Chase & Co, “there have
been few times in history with as much liquidity for equity capital market
transactions.” “We anticipate a more competitive year in 2021, with IPOs
returning in full force.”

Another advantage of pre-IPO investment is that you can invest in the


future and help to bring about the change you want to see.

DARKTRACE (EST MARKET CAP: £3.8 BILLION)

Darktrace, a cyber security firm, intends to list on the London Stock


Exchange (LSE) in 2021, with a target value of £3.8 billion. The company sells
software to businesses that helps them identify cyber attacks on their
networks, and it was especially effective during the Covid-19 lockdown,
when millions of people went to work from home. Darktrace stock has
grown in popularity as a result of the increased demand for the commodity.

The business, which was established in 2013, has 44 offices around the
world and employs over 1200 people.
EG GROUP (EST MARKET CAP: £10 BILLION)

A blockbuster IPO is on the cards for British retailer EG Group, said to be


valued at around £10 billion. Many investors are keeping a close eye on the
upcoming listing after EG Group announced that it will be taking over
supermarket chain Asda, which had IPO plans of its own. However, many
are wary of the group since its sales slumped due to lower fuel demand in
2020.
Revenue for the nine months ending September 2020 was down by 23%
from the same period in 2019. EBITDA increased by 17% over this time,
which may oer some consolation for the group.

TRUSTPILOT (EST MARKET CAP: £774 MILLION)

Trustpilot, a review website, is another IPO that could happen in 2021. If the
company can maintain its optimistic revenue gure of at least £76 million, it
could fetch a value of more than £770 million. Clients that subscribe to
Trustpilot's online services account for the majority of the company's sales.

Trustpilot is a market leader in online reviews, and it is working to increase


its reputation by launching a platform that will combat false reviews on the
internet. On Trustpilot's website, there are over 94 million ratings, and the
site gets four billion views every month.

MCLAREN GROUP (EST MARKET CAP: £2.4 BILLION)

Since 2011, McLaren Group, a British Formula One team and sports car
manufacturer, has been linked to an IPO.

Following Aston Martin's IPO in 2018, McLaren's automotive division chief


said that the company will not follow suit just yet.

In 2019, McLaren Group's CEO said that an IPO could not take place before
2021. Since the market for automakers was extremely volatile, with Brexit
affecting supply chains and the trade war increasing the cost of doing
business, this was the case. Now that Covid-19 has wreaked havoc on the
markets, the plans could be further delayed.

JAGUAR LAND ROVER (EST MARKET CAP: £2 BILLION)

Jaguar Land Rover (JLR) is a subsidiary of India's Tata Motors and has been
rumoured to be considering an initial public offering (IPO) for some time.

As a result of Brexit delays, slowing diesel sales, a decline in Chinese


demand, and – most recently – the coronavirus crisis, optimism around the
car company's IPO has dwindled.

After reporting a £3.1 billion write-down of its investment in JLR, Tata


Motors shares fell the most on the Bombay Stock Exchange in 26 years in
2019.

VUE INTERNATIONAL (EST MARKET CAP: £1.6 BILLION)

The largest cinema chain based in the United Kingdom is Vue International.
It operates 286 cinemas in the United Kingdom, Italy, Poland, Germany,
Ireland, and Latvia. After figuring out a way to cash in on its savings while
keeping the company private, it was able to postpone its rumoured 2018
IPO.

Furthermore, it has grown internationally without relying on public markets


for funding, but its investments and development which necessitate
additional funds, especially in light of the Covid-19 pandemic, which forced
the chain to temporarily close many of its theatres. According to Vue, the
company is planning a £1.6 billion IPO in the near future.

BREWDOG (EST MARKET CAP: £1.5 BILLION)

BrewDog, a well-known craft beer brewer, revealed in 2018 that it was


planning an initial public offering (IPO) by 2020, but was waiting for the right
market conditions. Given the latest coronavirus outbreak, the likelihood of
the listing diminishing.
The IPO will enable current stockholders to profit from their investment
while also providing the company with longer-term liquidity. BrewDog is
rumoured to be considering a London launch, but a US launch hasn't been
ruled out entirely. The most recent estimate (in 2017) was £1 billion.

PROOF OF TRUST (EST MARKET CAP: OVER £1 BILLION)

Proof of Trust is a blockchain rm for resolving blockchain network conflicts.


The company claims to have a worldwide patent that will help it achieve this
goal by providing direct dispute resolution through smart contracts.

Proof of Trust has announced that it intends to list on the London Stock
Exchange in order to boost its profile and attract investment in order to
compete on a global scale – something that it claims tech companies
depend heavily on. The business announced its plan to list on the stock
exchange on June 30, 2020, with more details to come later in the year.

TIKTOK GLOBAL (EST MARKET CAP: $50 BILLION)

Many people are looking forward to a TikTok IPO in 2021, after the mega-
popular app was valued at $50 billion in July 2020. The exact date of the IPO
is uncertain, but we do know that TikTok Global will be listed on the stock
exchange. ByteDance will own 80% of the company ahead of the IPO, while
Oracle and Walmart will own 20% and 20%.

Even though it launched years later, TikTok is now larger than social
competitor Snap Inc. Investor interest is expected to be high if the TikTok
Global IPO goes off without a hitch.

STARLINK (EST CAP: $30 BILLION)

After its parent company, SpaceX, hinted at plans for an IPO in the future,
rumours of a Starlink IPO emerged in 2019. Elon Musk, on the other hand,
dismissed the rumours in March 2020, saying that SpaceX was
concentrating on other targets, such as creating a colony on Mars.
Starlink is a satellite network that aims to provide high-speed global
internet connectivity.

If SpaceX ever goes public, the valuation would be determined by market


factors at the time of the listing as well as the company's results.

INSTACART (EST MARKET CAP: $14 BILLION)

Instacart is a grocery delivery service that was created in 2012 and is now
valued at about $13.7 billion following its most recent round of funding in
June 2020. Whole Foods, one of the most important partners, was
purchased by Amazon a few years ago, making some people concerned
about the company's future.

Instacart, on the other hand, has expanded to serve 15,000 stores in 400
locations throughout the United States and Canada. The scale of its
footprint across North America attests to its continued growth, despite the
fact that it does not report its sales or profits.

ROBINHOOD (EST MARKET CAP: $11.2 BILLION)

Robinhood has been transparent about its intentions to go public. The


company began as a stock trading app, but it has since grown to include a
variety of services, with cryptocurrencies proving to be especially common.

Any IPO will be part of a larger strategy to transform the business into a full-
service financial services firm over the next few years. Obtaining investor
support, particularly given the high level of scepticism surrounding
cryptocurrency trading, may be the most difficult obstacle to preparing the
company for a public listing.

Robinhood raised $200 million from D1 Capital Partners in its most recent
round of funding (series G), which the company announced in August 2020.
This comes after a new round of fundraising in July 2020, which raised $320
million.
EAZE (EST MARKET CAP: $500 MILLION)

Since 2018, there has been a lot of talk about an Eaze IPO, but the
marijuana distribution service does not go public until the end of 2020. Of
course, the possibility has piqued the interest of traders and investors,
particularly in light of the cannabis industry's rapid growth over the last
three years.

Eaze expected $1 billion in sales by 2020, but it is still struggling to hit $500
million in transactional value. This could affect the IPO's launch date as well
as its final valuation. Eaze's long-term sustainability will be determined by its
ability to adapt to the rapidly evolving cannabis and tech environment.

VANTAGE TOWERS (EST MARKET CAP: €10-€20


BILLION)

In 2021, Vodafone plans to move the majority of its cell towers to a new
company called Vantage Towers. This is part of its strategy to monetize its
68,000 towers at the start of the 5G period.

Vodafone could make billions from the IPO, which would help it pay off its
debt. Although the company hasn't revealed anything about the IPO, it has
reported that the market cap of Vantage Towers will not surpass €10 billion
when it goes public.

BYTEDANCE (TIKTOK) (EST MARKET CAP: $75-$100


BILLION)

Starting a business in China ByteDance became a household name after


releasing its famous TikTok app in 2017. The public is anticipating an IPO in
2020, which is estimated to be worth $75 billion. The business started
reporting profits in June 2019 and reported annual revenues of more than
$20 billion. It makes the majority of its money from advertisements, but it's
also looking for new ways to diversify its sales.

However, in July 2020, it was reported that the company may forego an
International listing in favour of listing its Chinese operations on a Hong
Kong or Shanghai exchange. It's unclear how this would affect the
company's valuation until it goes public.

LAMBORGHINI (EST MARKET CAP: $11 BILLION)

Despite the Covid disruptions, Lamborghini has performed well and is


rumoured to be preparing an IPO in the near future. The Volkswagen Group
owns the carmaker, and if it goes public, the group will keep a majority
stake. For the time being, the listing's specifics are undisclosed..

BARBEQUE NATION HOSPITALITY (EST MARKET CAP: ₹10


BILLION TO ₹12 BILLION)

Barbeque Nation Hospitality, which began operations in 2005, is the owner


of one of India's largest restaurant chains. It has a presence in the UAE,
Oman, and Malaysia, in addition to being a household name in the region.

In 2020, the company plans to launch an initial public offering (IPO) worth
between ₹10 billion and ₹12 billion (roughly £105 million and £125 million),
with the proceeds to be used to open new restaurants, repay debts, and
finance general operations. The stock is expected to trade at a price of ₹5.

BIGGEST RECENT IPOS

Some of the biggest IPOs1 of 2020 include:

1. Hut Group
2. Palantir
3. Snowflake
4. Asana
5. JDE Peet's
HUT GROUP (MARKET CAP: £5.4 BILLION )

Hut Group is a retail and technology company that declared its intention to
list on the London Stock Exchange in August 2020, and went public on
September 21, 2020. At launch, the company aimed for a market
capitalization of £4.5 billion, but it soared beyond expectations, closing at a
value of nearly a billion pounds more (£5.4 billion).

In the United Kingdom, there is a strong demand for technology stocks,


which may bode well for The Hut Group in the future. Investor trust, on the
other hand, could be shaken by fears that the company would be unable to
list on the FTSE 100.

PALANTIR (MARKET CAP: $16 BILLION )

Despite the Covid-19 disruptions, data-mining company Palantir, co-


founded by Peter Thiel, will list on the NYSE on September 30, 2020.
Palantir has a reputation for secrecy, but it is one of the most powerful
players in the big data room.

The stock was listed at $10, which was higher than the NYSE's reference
price of $7.25 per share. The company's market cap was reduced to $16
billion, less than the expected market cap of $20 billion.

SNOWFLAKE (MARKET CAP: $33 BILLION)

In September 2020, Snowflake, a cloud storage and data warehousing firm,


will be listed on the New York Stock Exchange. It was one of the year's most
awaited listings, with major names like Warren Buffett's Berkshire Hathaway
(BRKb) and Marc Benio's Salesforce participating (CRM).

Snowflake had sold 28 million shares for $120 each the day before the IPO.
The IPO price was higher than the target range of $100 to $110 per share.
In the 12 to 18 months leading up to the IPO, the company had been doing
well.
ASANA (MARKET CAP: $4 BILLION)

Asana, a project management software firm, has chosen to list on the NYSE
directly in September 2020, on the same day as Palantir. Since shares
floated at $27, it was valued at $4 billion. Asana is one of the businesses
that benefited from the Covid-19 lockdown, which forced employees to
operate from home.

JDE PEET'S (MARKET CAP: €15.6 BILLION)

JDE Peet’s listed on Amsterdam’s Euronext NV exchange on 29 May 2020 –


ve days earlier than planned, following particularly strong interest from
investors. The company is the result of a merger between coee giants
Jacobs Douwe Egberts and Peet’s Coee. It is now the second largest
company of its kind by volume, after Nestlé, and operates in more than 140
countries. It is expected that newly-formed JDE Peet’s will generate about €7
billion in revenue.

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