CHART: 8 Tech IPOs to Look Forward to in 2024

Emmanuel Oyedeji -

The past few years have been a rollercoaster for tech IPOs. While 2023 saw some high-profile successes like Rivian's electric vehicle debut, overall, the IPO market has largely underperformed.

Many tech stocks that went public in 2022 (and even earlier) were trading well below their IPO price by 2023. This, coupled with rising interest rates and a general economic slowdown, created a challenging environment for new listings.

However, after two years of headwinds, the initial public offering (IPO) market is starting to pick up steam again as a lineup of tech companies gears up to go public in 2024. This year promises a mix of established tech giants and innovative disruptors, each poised to make a significant splash on the investment scene.

Let's dive deeper into some of the most talked-about potential IPOs that are generating the most buzz this year:

  • Turo: After briefly halting its initial public offering (IPO) endeavours in 2021, Turo, the peer-to-peer car-sharing platform, is now preparing for a potential listing as early as the middle of the year. This innovative platform has disrupted the rental car industry by providing a convenient and budget-friendly alternative to conventional agencies. With a substantial user base and also nearing profitability, Turo is reportedly targeting a valuation of approximately $3 billion.
  • UL Solutions: A global leader in safety science and sustainability is setting its sights on an initial public offering (IPO) with a targeted valuation of $5 billion. Originally slated for an earlier debut, the IPO has been postponed to 2024. Reports indicate that UL is collaborating with JPMorgan Chase & Co. and Goldman Sachs Group Inc. to navigate its IPO plans. Meanwhile, deliberations are ongoing and no definitive decisions have been reached regarding the size or timing of the listing, but it could occur anytime in 2024.
  • Reddit: San Francisco-based online discussion platform, Reddit, is on the brink of its highly anticipated initial public offering (IPO) scheduled for March 20, 2024. As the self-proclaimed "front page of the internet," Reddit aims to raise approximately $750 million in its upcoming IPO under the ticker symbol “RDDT,” potentially valuing the company at up to $6.5 billion. The IPO involves the sale of about 22 million shares, with the company and existing shareholders offering shares in the range of $31 to $34 per share, according to a released filing. Recent updates indicate that the IPO is between four and five times oversubscribed, increasing the likelihood of Reddit achieving the sought-after $6.5 billion valuation. Reddit's IPO signifies a significant milestone, breaking a notable lull in new tech market entries since Pinterest's public debut in 2019.
  • Discord: One of the most anticipated possible IPOs for 2024 is the social messaging platform Discord which has become a vital communication tool for gamers and online communities alike, boasting a valuation of $15 billion. While details are still under wraps, analysts expect Discord to file for an IPO in 2024-2025. The company's vibrant user base and potential for monetization through subscriptions and premium features, make it an attractive prospect particularly among younger investors.
  • Klarna: A leading player in the booming "Buy Now, Pay Later" (BNPL) market, Klarna is aiming for a staggering valuation of around $20 billion in its IPO. Financial news sources suggest an IPO could take place in the third quarter of 2024. This comes after a turbulent few years for the Swedish fintech firm, which saw its valuation drop from $45.6 billion in 2021 to $6.7 billion in 2022, despite this, its IPO is now likely to generate a frenzy of investor activity, especially from those seeking exposure to the rapidly evolving fintech sector.
  • Chime: This digital banking challenger has disrupted the traditional financial landscape, focusing on mobile-first banking and fee-free services. Chime has raised a total of $2.3 billion across several funding rounds and is considering an IPO in 2024 that could value the company at between $30 billion and $40 billion. While a specific timeline hasn't been announced, industry experts predict a potential launch in late 2024.
  • Stripe: A Stripe IPO has been long anticipated and was widely expected to happen in 2024. As a dominant player in online payment processing, Stripe has become a ubiquitous force in the e-commerce world, powering millions of businesses globally. However, recent developments, including deals with investors valuing the company at $65 billion, suggest a potential delay in going public. However, rumours persist about a potential IPO in late 2024. This offering would be a major event for the fintech sector, attracting significant interest from investors.
  • Shein: The Chinese fast-fashion powerhouse has taken the online shopping world by storm, offering trendy clothing at rock-bottom prices. Despite filing confidential paperwork with the U.S. Securities and Exchange Commission (SEC) for an IPO last December, Shein's plans have been put on hold due to scrutiny over its operations in China. The SEC's concerns regarding business operations disclosures and allegations of forced labour may push the IPO debut to late 2024 or even 2025. The fast fashion company is now considering alternative IPO locations like London, Hong Kong or Singapore. Shein was targeting a valuation of about $90 billion in its IPO.

Conclusion

As these companies finalize their plans and valuations, 2024 is shaping up to be a banner year for tech initial public offerings (IPOs), with a captivating mix of companies set to make their debut on the stock market.

Meanwhile, their performance will offer some insight into investor confidence, sector resilience, and market appetite amid economic uncertainties. These IPOs will be closely watched, providing insights into market sentiment and economic trends.