IPOs to watch out for in 2020

Published on
5/3/20
by
Passfolio

2020 is here and this year a wave of companies is planning to go public. In this post, we’ll provide an overview of some of the IPOs expected to happen in the upcoming months.

Airbnb

Perhaps Airbnb is the most recognizable name to go public this year. The company is an online marketplace that connects people who want to rent out their homes with people who are looking for accommodations in that location. 

Airbnb’s biggest home-sharing competitors, such as HomeAway and VacayHero have not had IPOs. In this scenario, Airbnb’s initial public offering is something investors have had their eyes on for quite some time now. 

According to Bloomberg, there are rumors that Airbnb might in fact pursue a direct listing instead of an IPO. If that happens, the company will bypass Wall Street underwriters and its shares will be issued directly to the public.

 

WeWork

WeWork basically rents out co-working office spaces for startups, freelancers and enterprises. Its revenue, in turn, comes from rent or membership payments that these companies and individuals make.

The company has faced intense scrutiny of its finances and many have been critical of CEO Adam Neumann's inappropriate antics (e.g. trademarking the term "We" and then forcing WeWork to buy it for $5.9 million). This culminated in a cancelled 2019 IPO and a valuation went from $47 billion to as low as 10 billion last year. Now, there are rumors that the company's troubled financial situation may force it to go through with its IPO in 2020.

 

Robinhood

With a zero commission fee policy, the Robinhood stock trading app has garnered over 10 million users in the past few years. At the moment, the company has a valuation of about 8 billion dollars

Robinhood has been on a mission to "democratize America's financial system" and an IPO could increase the company's brand recognition and potentially attract even more users to the app. However, Robinhood hasn't yet filled with the SEC to come public yet. 

 

Gitlab


GitLab is a hub for hosting project source codes that has been up and running since 2011. The global DevOps market is projected to be worth $12.85 billion by 2025, according to Grand View Research, and GitLab is among the most established players in the space, with clients like McDonald’s, IBM, and Goldman Sachs. 

In its latest funding round, Gitlab was valued at $2.75 billion and CEO Sid Sijbrandij has said publicly that he wants to list the company on Nov. 18, 2020 – his grandfather's 100th birthday. However, it is uncertain whether Gitlab will pursue an IPO or a direct listing. We'll have to wait and see. 


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