The U.S. IPO market saw a blockbuster year in 2021. Nearly 400 companies went public through traditional initial public offerings (IPOs) or reverse mergers with special-purpose acquisition companies (SPACs). But in 2022 private companies revered course, after inflation and the Federal Reserve’s aggressive interest rate hikes sent the stock market into a free fall.
There have been only 71 IPOs in the U.S. this year, the lowest level since 2009, according to Renaissance Capital, an investment bank specializing in IPO market research. The total funds raised during public offerings fell even more, to just $7.7 billion from last year’s $142 billion, Renaissance Capital’s data show.
It typically takes a private company six months to complete its IPO process after filing its intent to go public by filing an S-1 form with the Securities and Exchange Commission (SEC). But this year, many companies that filed S-1s in 2021 and early 2022 have delayed their IPO plans to at least 2023, hoping the bear market will be over by then.
Here are some of the largest IPOs to expect in 2023:
Reddit: $15 Billion
Social media site Reddit filed with the SEC to go public in late 2021, at the tail of a blockbuster year for IPOs. But the ensuing market meltdown changed Reddit’s plan and it still hasn’t announced a firm date to go public yet.
Reddit was most recently valued at $10 billion after a private fundraising round in August 2021. The company is reportedly seeking a valuation of $15 billion for its eventual public debut.
Stripe: $74 Billion
Also filing its intent to go public back in 2021 was digital payment software company Stripe. Stripe was last valued by private investors at $95 billion in March 2021, making it one of the most valuable fintech companies in the world. By July this year, however, the company discounted its own valuation by 28 percent to $74 billion, factoring in unfavorable market conditions.
Its core business remains strong. Last year, Stripe pulled in $12 billion in revenue, representing 60 percent year-over-year growth, Forbes reported in May.
There is a good chance Stripe will go public in 2023, considering the company’s stock awards to some of its early employees face a 2023 expiration date.
Klarna: $6.7 billion
The Swedish fintech startup known for its buy-now-pay-later service has seen its valuation collapse this year. The company was last valued at just under $7 billion in July after a fundraising round. That represents an 85 percent drop from a year earlier when private investors valued the company at nearly $50 billion.
Klarna CEO Sebastian Siemiatkowski expressed an intention to take the company public in an interview in September but said he want to wait for volatility in the stock market to settle before solidifying any IPO plans.
Chime: $25 billion to $40 billion
Chime, a San Francisco-based digital bank, was reported to be planning an IPO targeting March 2022 at a valuation of $35 billion to $45 billion. But in February, the company said the plan was on hold due to uncertain market conditions.
Chime was last valued at $25 billion by private investors after a fundraising around in August 2021. The company hasn’t changed its target IPO valuation, according to Forbes.
Instacart: $24 billion
Instacart filed to go public in the U.S. in May in a surprise to many investors amid the market turmoil. But in October, the grocery delivery company said it has decided to postpone its IPO to 2023 the earliest.
Instacart was last valued at $39 billion in March 2021. Since then, its valuation has dropped by 40 percent to $24 billion.
Mobileye: $17 billion
Mobileye is an Israel-based developer of autonomous driving technologies owned by Intel. The company filed with the SEC to go public in September. Intel recently priced the IPO at $21 a share, giving Mobileye a valuation of $17 billion.
That figure is a sharp decline from the $50 billion valuation Mobileye envisioned late last year.