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What Can We Expect From IPOs in 2022?

Written by Monica Savaglia
Posted December 21, 2021

2021 has been a phenomenal year for the IPO market. 

A record-breaking number of companies went public. As I'm writing this, there have been a total of 1,049 IPOs (including SPAC IPOs) — that’s an increase of about 157% from 2020. Globally, IPOs rose 64% in 2021 and IPO proceeds grew 67%.

Some contributing factors of this IPO boom could be linked to startups that need to acquire cash and the increased popularity of special purpose acquisition companies (SPACs). SPACs tend to go public to merge with or acquire companies to take them public. At the beginning of 2021, there was a continuation of 2020’s SPAC IPO rush, but that fizzled in early 2021. It appears that 2021 is closing out the year on a quieter note.

It’s been a volatile last two months of the year. Historically, the last few months have usually been quiet for the IPO market, but this year there’s uncertainty throughout U.S. markets. The news cycle on COVID-19’s emerging omicron variant and the worries of inflation has a lot of the public hesitant about the future, which has some people pulling back and waiting to see what exactly happens in the next few weeks or months before making any important decisions.

That’s a fair assessment. I don’t blame you if you’re one of those people. It’s hard to digest everything that’s going on in the world right now. And while there is a lot to be unsure about, I don’t believe that we should treat this time as being so full of doom and gloom. I know it’s hard not to get into that mindset when that’s the angle that most news networks choose. I think there’s always something to look forward to or some kind of angle that makes it possible to see opportunities emerging. 

Institutional research and IPO exchange-traded fund company Renaissance Capital had this to say about 2022:

Looking forward, we believe the 2022 IPO market will have a slow start and fail to match the past year’s record pace, but ample IPO candidates are ready to take the leap once conditions improve.

I would agree with that statement. I don’t know that the IPO market can keep the pace that it has set over the past two years, but I believe we’ll continue to see companies going public that have long-term potential. Companies that believe the next logical step toward sustainability and growth is going public. 

And that’s one thing that I’m looking forward to is 2022. Some people could call me an optimist, but I think it’s more being a realist. With that being said, here are two companies that I’ll be watching and anticipating their public debuts in 2022.

1. ThoughtSpot

ThoughtSpot is a cloud-based tech company that offers its AI-driven business intelligence analytics search software. The company gives its clients the ability to explore, analyze, and share real-time business analytics data in an easy and attainable way. Clients can make business decisions with real-time data, which is extremely important for the growth of any business. 

There are about 100 enterprise companies that are using ThoughtSpot’s cloud software, like T-Mobile, Hulu, and Schneider Electric. For example, with Hulu, ThoughtSpot’s software can measure how successfully a specific show is driving subscriptions, which is important data to analyze for a company like Hulu that needs to understand what its users are interested in and how to make sure similar content is available.

The company must be doing something right in its industry, as it was ranked No. 42 on Forbes’ 2021 Cloud 100 list. In November, the company raised $100 million in a Series F funding round, which brought the company’s total funding near $674 million and gave ThoughtSpot a valuation of about $4.2 billion. While there is no definitive date for a ThoughtSpot IPO, I will be keeping an eye out for it in 2022.

2. Chime

Chime is a financial technology company that offers fee-free mobile banking services. The company’s mission statement is, according to Forex.com, "to help Americans manage money, remove costly fees, and cater for an audience that increasingly does not want to visit a physical branch."

Chime offers checking accounts that have no monthly or overdraft fees, so it makes sense as to why its services have gained popularity with Americans, especially among lower- and middle-income Americans. The company provides banking services through its partners with Bancorp and Oklahoma-based Stride Bank to offer FDIC-insured checking and savings accounts. Most of Chime’s revenue comes from a percentage of the transaction fees that merchants are charged by Visa when consumers use Chime debit cards. 

In a total of 10 funding rounds, Chime has raised a total of $2.3 billion. The company is expected to be targeting March 2022 for an IPO date, with a target valuation of around $35–$45 billion. This is a public debut that I’ll be watching out for in 2022. 

This is just a glimpse of 2022. I expect more news as soon as the new year starts, and you will hear that news from me. Until then, happy holidays!

Until next time,

Monica Savaglia Signature Park Avenue Digest

Monica Savaglia

Monica Savaglia is Wealth Daily’s IPO specialist. With passion and knowledge, she wants to open up the world of IPOs and their long-term potential to everyday investors. She does this through her newsletter IPO Authority, a one-stop resource for everything IPO. She also contributes regularly to the Wealth Daily e-letter. To learn more about Monica, click here.

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