Whether you are curious about stock or any other form of financial trading or simply enjoy seeing a success of the startups – IPOs are a great to watch. Not only you get to learn how undervalued or overpriced a certain company was, but you also get to see a rapid development a company can achieve with the funds it raised.
We are entering the middle of 2016 and so far there has not been too many interesting IPOs. When looking at the financial industry, it is possible to highlight the listing of the largest Dutch bank – ABN Amro. Next to this, a few ECN currency brokers flipped an IPO this year.
X-Trade Brokers, just got listed roughly a month ago, which signified the largest initial public offering in Poland during the last 365 days. Also, a leading UK brokerage, CMC Markets, started listing its stocks in February this year. Nevertheless, this IPOs weren’t too exciting. There is much more to expect in the coming month from the tech sector.
The most promising
Airbnb, a company that lets everyone lend their house, flat or a room is expected to start issuing stocks this year and this is certainly the most interesting IPO to keep your eyes on. The reason for this is very simple – apart from nearly $25Bn valuation, Airbnb actually generates some significant revenues.
What also tells us that this IPO will be a successful one is the lack of legal issues behind the business processes. Even though some laws in Germany were prohibiting the usage of such peer-to-peer services, the whole legal framework behind Airbnb is rather favourable. In addition to this, there is quite a strong support for the shared economy nowadays and, hence, this company might be seen as the safe-haven investment.
The most interesting
Do you remember last time you used a landline for calling? Well, thanks to this company, quite soon you might not remember last time you ordered a taxi. Yes, you got it right, we are talking about Uber. Even though there is no certainty whether Uber will flip an IPO this year, it is quite probable.
What makes this IPO the most interesting one? The whole legal situation behind Uber. Clients love it for its pricing and simplicity. Taxi companies hate it. Without a doubt Uber is a successful company, yet its operations strongly depend on the legal decisions of the local authorities.
While strikes against Uber happen frequently, those are the local regulators that will have a final word in determining Uber’s success in terms of market coverage and, hence, revenues.
The most amusing
Without a doubt previous two companies are here to stay. Both of them offer quite an advanced technology that simplifies people’s lives and provide cost benefits. However, there is another company that looks for an IPO this year, and many investors are laughing about it.
We are talking about Snapchat, the company that allows millennials communicating with each other, sticking funny noses on their selfies, the company that struggles to produce hardly any revenues.
While some investors laugh about this IPO, others see it as a great opportunity. Snapchat may not look like a goldmine, but it certainly has some potential. The main question is whether investors will be patient enough to see Snapchat implementing powerful advertising solutions while sustaining the growth of its user base.