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Summary
- There has been a 14 per cent growth in the number of IPOs filed globally this year, as per a 2020 study conducted by Ernst and Young.
- Chinese businessman Jack Ma’s Ant Group is set to become the biggest IPO of the world, raising over US$ 34 billion.
- A few more major IPOs, including those of DoorDash, Bumble and Canoo are expected to launch by the end of 2020 or early next year.
After a bit of hiccup due to the coronavirus pandemic, 2020 turned into a busy year for IPOs. An October 2020 report by Ernst and Young says there has been a 14 per cent growth in the total number of IPOs filed globally this year, a 43 per cent year-to-date (YTD) increase in their proceeds of US$ 165.3 billion. The report also points that initial public offerings (IPO) launched in in North and South America raised about US$ 62.4 billion in proceeds.
A number of tech companies debuted on the North American stock markets in the second half of 2020, including Palantir (NYSE:PLTR), Asana (NYSE:ASAN), Snowflake (NYSE:SNOW), Nuvei (TSX:NVEI), etc. As the demand around electric vehicles (EV) also kicked up notch this year, quite a few electric car makers moved to get publicly listed as well, including big names such as Nikola Corporation (NASDAQ:NKLA) and Hyliion Holdings (NYSE:HYLN).
With a rush of public listings behind us, here are a few more IPOs we’re looking forward to.
Ant Group IPO
Ant Group IPO, the mother of all IPOs.
Chinese business tycoon Jack Ma’s Ant Group has been the most anticipated listing of 2020 so far. It is set to be the biggest IPO in the world, with expected total proceeds of over US$ 34 billion. This would make Ant Group surpass oil company Saudi Aramco as the biggest IPO, which had raised over US$ 29 billion in December 2019, and also its sister company Alibaba (NYSE:BABA), which had raised about US$ 25 billion in 2014.
The financial tech giant has priced its shares for US$ 10.32 apiece and to debut on the Asian markets of the Hong Kong Stock Exchange and the Star Market in Shanghai. Ant Group will put up about 1.67 billion stocks on each of the bourses, which would stand for about 11 per cent of the company in total.
According to a listing document filed with the Hong Kong Stock Exchange (HKEX), Ant Group shares will be up for trading on the HKEX on November 5. Post the IPO, Ant Group’s market cap is expected boom to about US$ 310 billion.
DoorDash IPO
After confidentially filing for a public listing back in February, food delivery app DoorDash is reportedly planning to launch an initial public offering in November or December.
Online delivery has been one of those businesses which saw a boost during the pandemic, and DoorDash has benefitted from that. Earlier in October 2020, DoorDash revealed that its revenue from restaurants and income generated from deliveries amounted to US$ 13.2 billion in 2019. In its first economic impact report ever, the company estimated to have made US$ 6.9 billion in net new impact on the US economy last year. DoorDash also raised a $16 billion valuation back in June.
Bumble IPO
Popular dating app Bumble is expected to launch an initial public offering early on in 2021. A top rival to the likes of Tinder and OKCupid, Bumble has marketed itself as ‘women empowering’ with tech platform that enables women to initiate conversations. Media reports say that the Austin-based company is expecting to raise up to US$ 8 billion in its upcoming IPO. The company itself, though, hasn’t revealed any finalized plans about the IPO.
Bumble reportedly has nearly 100 million users spread across 150 countries and has around 100,000 fresh users joining the app daily.
Back in November 2019, American investment firm Blackstone Inc purchased a majority stake in Bumble’s parent company MagicLab.
Canoo Ltd IPO
Electric vehicle maker Canoo Ltd is expected to get listed on stock markets in the fourth quarter of 2020. Canoo Ltd has been one of the many companies this year, along with Lordstown Motors and Nikola Corporation, that have gone the SPAC way to get publicly listed.
The California-based company will debut on the stock marketsc following its merger with Hennessy Capital Acquisition Corp, which is a special purpose acquisition company formed for the sole purpose of raising the capital required to acquire Canoo Ltd.
Shares of Hennessy Capital Acquisition Corp registered a growth of a little over one per cent this year and in the last six months. In the last three months, though, its scrips declined by over nine per cent. Hennessy Capital stocks are currently are valued at US$ 10.31.
Established in 2018 and currently headquartered in California, Canoo Ltd is expected to be valued at US$ 2.4 billion following its upcoming IPO.
