DoorDash, Wish and Affirm Join Airbnb to Fuel Year-End IPO Boom
As Airbnb Inc. gears up for its long-awaited NASDAQ debut, other consumer tech companies are joining the IPO party, which has been dominated by listings so far this year. business software.
Food delivery service DoorDash Inc., online discount retailer Wish Inc. and installment loan provider Affirm Inc. may join Airbnb to go public in the coming weeks, according to people familiar with their finances. plans. All are said to be looking to hold their IPOs before the end of 2020, the people said.
That would add billions of dollars to the record total of more than $ 140 billion raised on U.S. exchanges this year, according to data compiled by Bloomberg. This includes Special Purpose Acquisition Companies, or SAVS, which have reached all-time highs, the data shows.
IPO advisers expect to see a record number of listing activity in the period between Thanksgiving in the United States and the Christmas holidays. Companies that stayed out of the market chaos at the start of the COVID-19 pandemic are now rushing to go public, having also waited for the outcome of the U.S. election before taking action.
Airbnb will be looking to raise around $ 3 billion when it goes public, people familiar with its plans have said, making it the largest of the four. The house rental company intended to go public on Thursday, but decided to wait until next week to prevent its news from being overshadowed by the aftermath of the U.S. election, Bloomberg News reported.
Public filing – or flipping – of listing documents marks an important step in the IPO process, giving investors a comprehensive first look at a company’s finances as well as details of its operations and ownership. Fifteen days after the publication of a prospectus, a company can start receiving orders from investors for shares in connection with the IPO.
San Francisco-based DoorDash is moving forward with plans after helping pass a California voting proposal that allows it and other companies in the concert economy to treat drivers and delivery people as independent contractors rather than employees. The company, which said in February it confidentially filed for an IPO with the U.S. Securities and Exchange Commission, could reverse its listing plans as early as this week, people familiar with the matter said.
Online retailer Wish filed a confidential listing request in late August and is expected to reveal its flyer within two weeks, people familiar with its plans said. The Milpitas, Calif., Company, sponsor of the Los Angeles Lakers of the National Basketball Association, was last valued at $ 11.2 billion in August 2019, according to a statement at the time.
A public Affirm filing, which allows online shoppers to pay in installments, could also be imminent, people with knowledge of the matter said. The Mountain View, Calif., Company said in October it had filed a filing with the SEC on a confidential basis.
Investors won’t have to wait any longer to see the stock market debut of video game platform Roblox Corp., whose last private value was $ 4 billion. The San Mateo, Calif., Based company said in October it had submitted confidential documents.
The timing of all quotes could change and discussions about company valuations are ongoing, the people said. Representatives for Doordash, Affirm and Wish declined to comment.
The incoming wave of consumer tech announcements follows a rush of enterprise software companies that entered the market in September, when seven software makers, including Snowflake Inc., Unity Software Inc., Asana Inc. and Palantir Technologies Inc., have gone public.
The tech IPO boom is expected to continue through 2021. Grocery startup Instacart Inc., which reached a valuation of $ 17.7 billion in an October funding round, could be listed in the year Next, just as software maker UiPath Inc. and ThredUp Inc. have each confidentially filed for listing, while online mortgage lender Better.com has appealed to banks to help it go public in 2021. The Bumble dating app is also preparing for an IPO early next year, which could value it at $ 6 billion. to $ 8 billion.