What’s Ahead for IPOs in 2020
What’s Ahead for IPOs in 2020
(Bloomberg Businessweek) -- Last year was a wild one for companies going public. Ride-hailing stars Uber Technologies Inc. and Lyft Inc. are trading well below their debut prices, and the collapse of its initial public offering plunged WeWork into crisis. Here’s some of what’s on tap for 2020:
The Big One
Home rental service Airbnb Inc. could be the highest-profile debut. It’s considering a direct listing, meaning it won’t be selling new shares to raise capital. Instead, existing private shares will become tradable on an exchange, giving early investors a chance to profit. The company was valued at $31 billion in a 2017 private funding round.
Chasing Food Delivery
Postmates Inc. has been sitting on its confidential IPO filing since February. Olo, which provides back-end software for delivery services, reached out to potential advisers late last year for an IPO that could value it at about $1 billion. And DoorDash Inc. is considering a direct listing.
Swinging Hard
Topgolf International Inc., a chain of driving ranges with restaurants, is said to be aiming for a market value of $4 billion.
Even More Go Direct
Direct listings were almost unheard of until Spotify Ltd. did one in 2018. Now venture capital firms and investment banks are promoting them. Other companies that may be weighing the direct route include GitLab Inc., a platform for tech developers, and Asana Inc., which makes work management tools.
Everyday Business
Reynolds Consumer Products Inc.—famous for aluminum foil and Hefty trash bags—is seeking a $5.7 billion valuation. And private equity-backed supermarket chain Albertsons Cos. has confidentially filed for an IPO that could be one of the year’s biggest.
Testing the Influencer Economy
The “bed-in-a-box” mattress retailer Casper Sleep Inc. filed this month for an IPO. It warned investors that it relies heavily on marketing via people with large online followings.
To contact the editor responsible for this story: Pat Regnier at pregnier3@bloomberg.net
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