4 upcoming IPOs to watch in April
Breaking down the four hottest companies going public this month, including Coinbase and Robinhood.
Another batch of high-profile companies are slated to debut soon, and we break down the financials for each of these soon-to-be public listings to help you decide whether they’re worthy of your watchlist.
1. Coinbase (COIN)
Coinbase is the largest digital currency exchange in the US. Supported cryptocurrencies vary by region, but the platform boasts 43 million verified users and $90 billion in platform assets.
- Publicly filed: February 25, 2021
- Exchange: Nasdaq
- Ticker symbol: COIN
- Valuation: Estimated $90 billion
While no firm date has been set, Coinbase’s stock is likely to go public in April, Bloomberg has reported. Coinbase plans to go public via a direct listing, which means that instead of issuing new shares, existing shares are sold by company employees and investors.
With the release of Coinbase’s S-1 filing, we see a promising trend of rising revenue and falling losses. Private trading of its shares in March suggests a $90 billion valuation, up $13 billion from its February valuation.
| 2019 | 2020 | |
|---|---|---|
| Coinbase revenue | $533.7 million | $1.27 billion |
| Coinbase net income (loss) | ($30.3 million) | $127.4 million |
2. Robinhood
Robinhood is a commission-free trading platform that caters to new investors. While multiple reports suggest the company could go public as early as April, nothing has been confirmed. Still Robinhood has had no difficulty nabbing headlines this year and is sure to be one of the bigger IPOs of the spring. Keep your eye out for updates on Robinhood’s IPO.
- Privately filed: March 23, 2021
- Exchange: Not yet released
- Ticker symbol: Not yet released
- Valuation: Estimated $40 billion
On March 23rd, Robinhood filed a confidential registration statement with the US Securities and Exchange Commission. Since it has yet to make its listing public, it’s difficult to comment on the company’s financial data and overall performance. That said, we know that Goldman Sachs is underwriting the deal and that some shares may be sold directly to Robinhood traders.
In September 2020, Robinhood raised $460 million in a Series G funding round and was valued at $11.7 billion. The company’s valuation could sit as high as $40 billion, according to Forbes.
3. Compass (COMP)
NYC-based real estate brokerage Compass is one of the largest brokerages in the US. It has over 19,000 agents across the country and seeks to empower its agents and clients with tech-focused buying and selling solutions.
- Publicly filed: March 1, 2021
- Launch date: April 1, 2021
- Exchange: New York Stock Exchange
- Ticker symbol: COMP
- Valuation: Estimated $6.4 billion
Compass’ financials paint an interesting picture: The company has been increasing its revenue year-over-year, and it appears to be narrowing its losses — but it’s not yet profitable. To date, the company has raised more than $1.5 billion. Following a private funding round in July 2019, it was valued at $6.4 billion.
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Compass revenue | $884.7 million | $2.3 billion | $3.7 billion |
| Compass net loss | $223.8 million | $388 million | $270 million |
4. Frontier Group Holdings (ULCC)
Frontier is an ultra-low-cost passenger airline that operates across North America. In 2019, it served 23 million passengers across 110 airports, providing competitive fares for domestic flights across the US.
- Publicly filed: March 8, 2021
- Launch date: April 1, 2021
- Exchange: Nasdaq
- Ticker symbol: ULCC
- Valuation: Estimated $4.5 billion
It comes as little surprise that Frontier — a company firmly rooted in the travel sector — has had a difficult year. Prior to the pandemic, the company was increasing its revenue and profits. Last year, its revenue dropped by over 50% and it generated a loss of $365 million.
Competitor stocks from American Airlines (AAL) and Delta (DAL) saw sizable drops in value in 2020 but have both begun to recover.
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Frontier revenue | $2.1 billion | $2.5 billion | $1.2 billion |
| Frontier net income (loss) | $92 million | $309 million | ($365 million) |
Image: Supplied
