Beyond SNAP: 2017’s Most Awaited IPOs
2017 has seen a growth spurt in the number of filings to go public, as companies take on the challenge that comes with its new issuance as well as meeting the short-term requirements that stakeholders could have in the company’s functioning. After Snap Inc.’s new release this year, investors are looking for other potential businesses that could raise just as much revenue and possibly even better returns. Companies with a unique idea, a strong track record and excellent account management in their workings seem just as highly anticipated as Snap’s release was, or even more. Here are some of the issuances that the investment world impatiently awaits.
- Palantir Technologies
Another data analytics company that might go public this year, Palantir Technologies was founded by Peter Thiel in 2004. The firm already has a deeply-entrenched clientele base which includes large law businesses and even governments. Using its unique data tools, the company can process enormous volumes of data over time. The information would then be used to make correlations between variables that would not be possible without the company’s unique data analysis services. The data then enables Palantir’s customers to make better decisions with regards to the relations it is presented with.
Despite having largely avoided going public, Palantir’s employees and investors alike need more liquidity at the moment. A chance for better terms for cash presents itself if the company goes public. The new issuance of this business would be one of the largest of the year owing to its $20 billion valuation.
This company offers the unique service of streaming music through its software or website on computers, or through its app on mobile devices. In line with its increasing popularity and widening clientele, the firm sought extra funding last year. It is from one of the terms that the company used so as to obtain additional revenue that we deduce the possibility of Spotify’s release this year. In the clause, the firm took on $1 billion in convertible debt. However, interest rates for this debt rise by 1 percent for every six months up to the time the rates have reached 10 percent or the company holds its IPO. As such, members of the company’s administration are under more pressure to make the new release as soon as possible so as to avoid more debt.
Spotify has been valued at $8.5 billion and has had a revenue spike of 80 percent since 2014.
- Vice Media
Described as “one of the world’s most exciting media companies,” Vice Media has the support of 21 Century Fox and Walt Disney Co. which are amongst the firm’s largest investors. The media enterprise has been valued at $4 billion. Additionally, the company enjoys its reputation from a strong brand and has an active customer base from millennials.
The firm’s plans to expand its reach into Asia, India, and Africa mean that it will require larger volumes of revenue to fuel its establishment in these sectors. An offering is, therefore, a likely solution. Additionally, the company’s CEO Shane Smith said the firm “would be stupid” not to consider having an IPO this year. For these reasons, investors believe it is highly likely the business will see its first day’s trading during 2017.