With 191 IPOs in 2021, will this trend continue in 2022?
Last year was a record year for IPOs, with the highest number of new listings hitting the bourse for the first time. According to IPO Watch Australia, a benchmarking-based report compiled by HLB Mann Judd Perth, “there were 191 IPOs listing on the ASX in 2021 which was the highest number of new floats in the last decade and more than the previous two years combined. The volume of activity increased significantly in the second half of 2021 with 68% of new listings occurring in the final two quarters.”
“Total funds raised for the year was $12.33 billion. This was a significant increase compared to both the previous year of $4.98 billion, which was impacted in the early part of the year by COVID-19, and the total in 2019 of $6.91 billion,” says Marcus Ohm, Partner, Corporate & Audit Services.
The big question is, will this trend continue?
According to the report, “following the strong end to 2020, listing activity continued to grow throughout 2021, particularly during the second half of the year. This trend looks set to continue into early 2022 based upon upcoming floats.” The report goes on to highlight materials as the main sector that should see IPO activity, “the pipeline reflects the dominance of the Materials segment during 2021 with 17 of these proposed listings and 45% of the funds being sought coming from the sector.”
Here is a list of upcoming IPOs in Australia
Here is a list of upcoming IPOs in US
Worthy of a mention: Discord
Think WhatsApp. Discord, is an instant messaging, video, and voice call platform that is popular with gamers but has now expanded into many other categories, including communities for sports, entertainment, investing, online education, and more.
Expected IPO timeline: 2022
Estimated IPO valuation: $10 billion-plus
Growth has been exponential. Monthly users range from 56 million to 140 million between 2020 and mid-2021. The platform competes against chat systems from Salesforce.com’s (CRM) to Slack and Google Chat. Back in 2021, Microsoft dipped its toes in the water, asking for $10 billion but was knocked back. All in all, this IPO should be one to keep on your watchlist.