The 13 Hottest IPOs to Watch For in 2020
2020 could be a hot year of IPOs despite a few high-profile disappointments last year. Investors finally got their chance to snap up shares in hot companies such as Uber Technologies (UBER), Lyft Inc. (LYFT) and Pinterest (PINS) ... but those three and others posted sobering losses for anyone who bought in early.
What went wrong?
Well, the same thing that often goes wrong for IPOs early on: The market for them is fickle. But while the stocks above were money-losers, the average IPO gained 20% across the year, according to IPO research firm and ETF provider Renaissance Capital. Interestingly, the top-performing sectors for initial public offerings were more traditional fare, such as consumer staples, health care, financials and materials.
One of the biggest obstacles for IPOs last year was the widely publicized implosion of workspace real estate firm WeWork, which had to cancel its planned 2019 offering because the company was running out of cash. It was a stiff reminder that high growth isn't enough - there has to be a viable path to profitability.
Despite some deserved investor skepticism, however, it still looks like 2020 could rejuvenate IPO enthusiasm.
Here, we look at some of the most prominent IPOs that could happen in 2020. This list includes companies that have filed Form S-1 with the SEC, have unofficially stated their intentions with Kiplinger or other media outlets, or have made moves similar to other firms preparing to go public.
Airbnb
During the financial crisis, Brian Chesky and Joe Gebbia were struggling to afford their San Francisco apartment. To make ends meet, they rented out their apartment during an industrial design conference and bought air mattresses for their guests to sleep on. What they called "Airbed and Breakfast" at the time later became Airbnb and re-shaped the home sharing industry.
The initial website was rudimentary, but people still saw the value in the service, and growth quickly followed. Airbnb
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