The Unicorns Most Likely To Test IPO Waters In 2019

Despite a rough fourth quarter, 2018 was a robust year for U.S. IPOs, with deal numbers and proceeds rising 19 percent and 32 percent, respectively, to 190 and $47 billion, according to IPO investment manager Renaissance Capital.

The firm attributed the buoyancy to abundant health care, tech and China issuances.

Noteworthy 2018 Tech IPOs

  • Spotify Technology SA SPOT
  • TENCENT MUSC ENT ADR REP 2 CL A ORD TME
  • Dropbox Inc DBX
  • Docusign Inc DOCU
  • Elastic NV ESTC
  • ADT Inc ADT
  • Pivotal Software Inc PVTL
  • SolarWinds Corp SWI
  • Zscaler Inc ZS
  • Anaplan Inc PLAN
  • Eventbrite Inc EB
  • Pluralsight Inc PS
  • Smartsheet Inc SMAR
  • Zuora Inc ZUO
  • SVMK Inc SVMK
  • Sonos Inc SONO
  • Domo Inc DOMO

Most of the above newly public companies are trading with losses for the year — a function of the broader market malaise that has hit stocks since October. Spotify, for instance, is down about 20 percent since its April 3 NYSE debut.

Will the lukewarm performance of the 2018 class of tech IPOs deter others waiting in the wings?

Experts say there's likely to be no shortage of tech IPOs hitting the Street once again in 2019, provided the broader market sell-off does not extend into the new year.

Related Link: A Global IPO Report Card For 2018: US Holds Up, China Dominates In Cross-Border Listings

Likely 2019 Tech IPOs 

Benzinga compiled the tech firms that are most likely to tap the public markets in 2019, according to CB Insights, which has shortlisted them based on a proprietary company rating algorithm.

Cloudfare

Cloudfare, a provider of software for internet security and speed, is reportedly aiming to go public in the first half of 2019, with the offering likely valuing the company at about $3.5 billion.

Rubrik

Palo Alto, California-based data management company Rubrik is another potential IPO candidate. CEO Bipul Sinha reportedly hinted at a listing in a May 2017 interview, and the speculation of an IPO gained ground following the appointment of former Atlassian Corporation PLC TEAM CFO Murray Demo to the same position.

Medallia

Customer experience management SaaS company Medallia is expected to offer its shares to the public in early 2019. Based on its last funding round in 2015, the company is valued at $1.25 billion, according to Forbes.

Zoom

Zoom, a video conferencing company based in San Jose, California, is also readying for a public listing at a valuation of several billion dollars, Reuters reported. The company's latest funding round in 2017 valued it at $1 billion.

Peloton

Peloton, a maker of home fitness equipment and content, has been sounding out its intention to go public in 2019. It recently raised $550 million, bringing the valuation of the company to $4.15 billion.

High-Profile IPOs In The Pipeline

Uber, Lyft, Airbnb, Pinterest and Slack are among some high-profile companies expected to list on Wall Street.

Uber, Lyft Hail Public Investors

Uber confidentially filed for an IPO with the SEC earlier this month, and the IPO is likely to value the ride-hailing company at $120 billion, according to Bloomberg. Smaller rival Lyft also announced that it confidentially filed for a proposed IPO, although it said the size of the offering and price range are to be determined. 

Taking The Less Traveled Path

Airbnb and Slack are reportedly weighing the possibility of a direct listing, the route taken by Spotify that obviates the pricey IPO option, according to Recode.

Chat and messaging services provider Slack is reportedly shooting for a valuation of about $10 billion.

Social media company Pinterest is prepping for an IPO early next year, with the offering likely to value it at $12 billion, according to the Wall Street Journal.

Other possible IPO contenders include data mining company Palantir and the payment tech company Stripe. 

Posted In: AirbnbBloombergCloudfareLyftMedalliaPelotonReCodeRenaissance CapitalReutersRubrikSlackUberWall Street JournalZOOMNewsIPOsTechMedia

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