2021 is already the busiest year for the IPO market since the dot com era, the most recent successes being Dutch Bros, Toast, Roblox, and Robinhood. And the trend is not over yet. A queue up of between 90 and 110 companies is expected to go public over the year’s remaining months. So get ready for a record-breaking lineup consisting of some high-growth IPOs that you wouldn’t want to miss.
In This Article
1. Warby Parker
First on this lineup is Warby Parker. It’s one of the leading eyewear companies with a business model that aims at providing high-quality eyeglasses at an affordable price on both its online shop and retail stores. The company will be going public through a direct listing on the New York Stock Exchange under the ticker “WRBY.” The tentative date for Warby Parker IPO is September 29, 2021.
Warby Parker is viewed as an emerging growth company. In 2020, the company generated a revenue of $393 million, a 33% growth year over year. However, while the company is still growing, it’s yet to make a profit. It had a $55.9 million net loss in 2020, a break-even in 2019, and a loss of $22.9 million in 2018.
A challenge for the company, and most retailers, has been store closures driven by the pandemic. Furthermore, due to its affordable pricing, increased shipping costs and supply chain constraints have negatively affected its bottom line.
The opportunity for Warby Parker lies in the online eyewear market, where there’s shallow competition. By going public, the company should be able to raise money to grow its market share and possibly turn a profit in a couple of years.
2. The Fresh Market
The Fresh Market is set to return to the public market five years after going private. The company hopes to reduce its overwhelming debt load using proceeds from this IPO. In its S-1 filing, CEO Jason Potter remarks, “With this offering, we will return to the public markets, which we believe will allow us significant flexibility in funding our strategy, including allowing us to refinance a significant portion of our debt.”
In 2020, the company’s sales rose by 24% to almost $1.89 billion from the previous year’s $1.52 billion. These record sales boosted its bottom line, which grew from a net loss of $65.4 million in 2019 to a net income of $26 million in 2020.
The company sees an opportunity in their small box format stores in populated areas. It intends to expand its Market Meal Kits and the new ready-to-eat concept, ‘Kitchen Square.’
The company plans to list on the Nasdaq under the ticker symbol $TFM. Like with many IPOs, the stock’s price range is yet to be unveiled, and the number of shares that would be available is also unknown.
3. Authentic Brands
Authentic Brands, the consumer brand company behind Forever 21, Sports Illustrated, and the Shaquille O’Neill brand, is planning an IPO listing on the New York Stock Exchange under the ticker $AUTH.
The company’s business model is unlike any other consumer brand company you’ve come across. In its IPO filing, the company describes itself as a brand development, marketing, and entertainment company. “We don’t manufacture anything; we are a licensing business and are purely focused on brand identity and marketing,” Says CEO Jamie Salter in a CEO letter.
The company’s net income in 2020 was $211 million, up from $72.4 million in 2019. It’s now eyeing the sports betting industry and plans to expand the Sports Illustrated brand.
4. Allbirds
Allbirds is known for its sustainable footwear, particularly its wool trainers that have become the most popular footwear in Silicon Valley. The company has applied for an IPO listing on the Nasdaq exchange under the ticker symbol $BIRD.
Allbirds’ revenue in 2020 rose to $219 million from $193.7 million in 2019. Revenue from the first half of 2021 came in at $117.5 million. Even though the shoe maker’s revenues have been growing, the company is struggling to turn a profit. It reported a loss of $14.5 million in 2019 and $25.9 million in 2020. For the first half of 2021, the losses add up to $21.1 million.
Allbirds has a loyal following of Millenials who are increasingly conscious about the environment and thus favor sustainable solutions. The company hopes to aggressively increase its brick-and-mortar stores as they have embarked on a ramp towards hundreds of potential locations. However, the company faces stiff competition from brands like Nike and Addidas, who, over the decades, have amassed a cult-like following.
5. Instacart
Instacart is a grocery pick-up and delivery company that enables customers to order groceries from various stores via their mobile app. The company hires personal shoppers who go into the stores, select the ordered items, package them, and deliver them to customers.
The pandemic offered an exceptional opportunity for Instacart when lockdowns increased demand for grocery delivery.
The company’s profitability is unknown, but some leaked documents revealed that Instacart’s first profitable month was April 2020, after many months of losses.
In March 2021, Instacart was valued at $39 billion. Its current valuation is estimated to be $50 billion.
Other potential IPOs to look out for
5. Chobani (the yogurt company)
6. Sweetgreen (fast salad restaurant)
7. Impossible Foods (plant-based meat)
8. Flipkart (Indian online retailer)
9. Reddit (Social media)
10. Stripe (fintech)
11. Stronghold Digital Mining (crypto)
Conclusion
Let’s admit it; there’s nothing more exciting than IPOs, direct listings, and SPACs. Should these IPOs happen, we’re in for an invigorating autumn.
Will you be buying any of these companies? Let me know in the comments.
Read More:
2 replies on “11 High-Growth IPOs to Watch in Q4-2021”
Warby Parker soars more than 30% above its reference price of $40, closing at $54.05 on its first day of trading.
All Birds shares rose 63% on its trading debut, raising its valuation to $4 billion.