This year is shaping up to be the year for new-age IPOs, putting several game-changing IPO stocks on investors’ radar.
After a touch-and-go 2023, IPOs are off to a strong start this year with more than $20 billion raised in the first six months. The boom, mainly led by start-ups and next-gen companies, is underscored by a thriving macroeconomic market. Robust liquidity conditions have further heightened the optimism surrounding IPOs.
The U.S. market in particular is experiencing a strong resurgence. Research by Ernst & Young shows that IPO proceeds in Q1 this year came in at $8.7 billion versus $2.6 billion in the same period last year. This momentum will continue through 2025.
For investors, the IPO rally presents a great opportunity to add some high-potential newcomers to your portfolio. These companies are new to the scene with plenty of growth aspirations. Some could even be the next Amazon (NASDAQ:AMZN) or Google (NASDAQ:GOOG, NASDAQ:GOOGL). After all those companies were IPOs at one time.
Chime
Chima app open on a phone with a blurred chart on a computer screen in background. Chima IPO.
Source: VideoBCN / Shutterstock
The Fin-tech company, Chime, is one of the most game-changing IPO stocks this year. Widely lauded as America’s largest digital bank, the company has garnered a strong following amongst millennials for its transparent approach to banking.
The Chime app offers an easy-to-use interface for financial management with several banking services free of fees. Without the bells and whistles of a traditional banking platform, Chime appeals to a younger demographic of users accumulating wealth.
The company’s initial plans to launch its IPO were derailed last year due to uncertain macroeconomic conditions. Now, as the IPO market gains steam in 2024, Chime’s public debut is imminent. And while the company has not initiated IPO discussions with banks, a person close to the matter says it is planning to go public next year.
At a valuation of $5.8 billion, Chime remains one of the most promising IPOs on the market for several reasons. The shift to digital payment apps will serve as a tailwind for the company as it continues to expand its offerings. This will be amplified by its growing customer base which will help scale its business and drive organic growth in the coming years. All signs point to Chime becoming the next tech juggernaut.
Skims
U.S. reality TV star Kim Kardashian take a walk through sightseeing of Yerevan during her visit in Armenia
Source: Asatur Yesayants / Shutterstock.com
The rapid ascent of Skims is admirable. Founded by Kim Kardashian in 2019, the company now valued at $4 billion is expected to go public soon. The popular shapewear brand distinguishes itself from its competitors with garments for different body types and skin tones. Skim’s premise is to cater to a large customer base while prioritizing comfort and style. This ethos was widely applauded as the company’s products blew up on social media.
Now as Skim’s staggering rise hits its zenith, it is reportedly exploring an IPO. The shapewear company stands to benefit from a bullish IPO market and a loyal customer base. Moreover, the funds raised from its offering will help Skims raise the capital it needs to further its market expansion.
Looking at its growth prospects, Skims is on track for long-term sustainable growth. Two factors play in its favor. The first is a strong online brand presence- enhanced by endorsements by several celebrities. Second is the demand for more inclusive clothing among millennials and GenZ. This will help give Skims a competitive edge in the market.
Skims’ unique product offering and loyal customer base make it one of the most promising IPOs on the market. With over $1 billion in net sales under its belt, this company is poised to be the next Amazon or Google.
Panera Bread
The front of a Panera Bread restaurant.
Source: Jonathan Weiss / Shutterstock.com
After four years in the private sector, Panera Bread is all set to go public this year. The company filed for a public listing last November and initiated several internal changes in preparation for the IPO. As a go-to budget-friendly lunch option Panera remains one of the most game-changing IPO stocks this year.
Panera is all hands on deck as it approaches its IPO. The company is in the midst of a major menu overhaul– including 20 new updates. The focus is to return to its core offerings of soups and salads. Furthering its push for a successful launch, Panera is also lowering operational costs, by announcing plans to lay off 17% of its corporate staff. These streamlining efforts will set the company up for long-term success and improve its financial health in a competitive market.
Looking ahead, Panera is well-positioned to dominate the fast-casual food market when it goes public. Its diverse portfolio of companies including Caribou Coffee and Einstein Bros Bagels strengthens its market presence and consumer appeal.
If the company’s IPO is received well, it is well on its way to becoming the next Amazon or Google. Even restaurateur, Danny Meyer expressed his enthusiasm, stating he will invest and join as a director when Panera goes public.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
On the date of publication, Divya Premkumar did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Divya has a background in finance and accounting and has worked in FP&A roles at Fortune 500 companies. She is an avid reader and enjoys writing on a variety of topics including stocks, crypto, blockchain and global policy.
