The term “unicorn IPO” was first popularized in 2013 to describe startups with a market value of over $1 billion before their initial public offering. Over the past several years, investors have been eagerly awaiting a wave of “unicorn IPOs,” or IPOs of these high-value private companies.
Recently, a group of these potential unicorn IPOs have been taking shape. The first of these companies include ride-hailing giants Uber and Lyft, both of which have confidential IPO filings with the SEC. Also included in this group are Slack, Pinterest, and Airbnb, which have taken the necessary steps to go public and are said to be preparing their respective IPO filings.
These companies have become significant players in their respective industries, with market-leading products, sizeable revenues, and impressive user bases. Uber, for instance, had 38 million customers and generated $11.3 billion in revenue in 2018, while Airbnb had half a billion customers and $3.7 billion in revenue in 2018. Slack has found success in the collaboration space, and is expected to be valued up to $10 billion in their public offering.
The market for these IPO offerings is expected to be strong, as these companies have gone through rapid expansion and demonstrated strong fundamentals leading up to their IPOs. Investors have been drawn to these companies, as their staying power and the opportunity for growth have made them attractive to both retail and institutional investors.
Moreover, the timing of the IPO filings couldn’t be better. Stock markets have been largely unaffected by global macroeconomic volatility thus far this year, creating a favorable climate for these unicorn IPOs. Furthermore, the tech sector has been booming in recent months, with investors pouring money into the sector and creating a strong market for upcoming IPOs.
With their upcoming IPOs, these unicorn companies are set to create the first wave of new tech giants. These companies are expected to join the ranks of some of the most successful technology companies of our time and will no doubt have a noteworthy influence in the markets. As such, investors should keep an eye on these companies as they prepare to go public in the coming months.
