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Upcoming IPOs in the UK for 2022

Initial public offerings (IPOs) are a way for private companies to raise money, by offering their shares​ to the public on the stock market. This is an important time for private companies to become more widely available and allow investment access to the public.

Upcoming IPOs can benefit private investors in particular. This is because many IPO companies will include share premiums for their existing investors, so this can result in potential profits. Existing shareholders of a private company could include family, friends, and professional investors such as venture capitalists. These private equity investors help to finance companies with high growth potential in exchange for a stake in their equity.

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What is IPO investment?

An initial public offering (IPO) happens when shares of a previously private company are offered to the public on a stock exchange. This is part of a new stock issuance. A company that is planning an IPO will select underwriters to manage their financial risk, and chooses a stock exchange​​ in which to feature their newly public shares. When the company goes public, the private shareholders’ shares will value at the same price as the public share. These are usually a higher value and therefore, they will profit from the relative returns that were expected.

In general, companies can register for an upcoming IPO after reaching a market capitalisation of $1bn, which is the same for a ‘unicorn company’. However, as long as the business can meet the listing requirements for a specific market and prove their potential for future profit, they can also qualify for an IPO.

Alternatively, an increasing number of businesses are choosing to use a special-purpose acquisition company​ (SPAC) as it may offer a slightly cheaper and quicker process. See our list of upcoming SPAC mergers​ to watch >

Upcoming IPOs to watch

  • Reddit IPO: Online social network and message board Reddit has just hired its first CFO as it prepares go public on the stock market. The current value of the company is around $6 billion and it plans to expand the business even further with the funding that it receives from the IPO, which may occur in 2022. Reddit's IPO comes at a convenient time for the company, after traders of the forum sparked a rally in January 2021 of shorted stocks such as Gamestop and AMC, causing a short squeeze for the former company.
  • Brewdog IPO: Craft-beer brewer BrewDog is a British company that has repeated its plans for an IPO on the London Stock Exchange at some point in 2022. The company previously announced its plans in 2018 but has been waiting for the right time to debut its shares to the public. BrewDog's IPO could value the company at over £1 billion.
  • Kraken IPO: American cryptocurrency exchange Kraken is expected to debut its shares on the stock market in 2022, making it the second US-based crypto stock to go public. The company is reportedly tied between having a traditional IPO or using a special-purpose acquisition company (SPAC), although it may have too high of a value for the latter and therefore, it would be more likely consider a direct listing. Kraken is currently valued at around $4 billion but this could rise to $20 billion after its next funding round.
  • Stripe IPO: Digital payments provider Stripe is planning a direct listing as it doesn't need to raise money, it has been reported. The company is backed by Elon Musk and serves clients such as Google, Amazon and Zoom, and it has been hailed as one of the world's most valuable start-ups. It was last valued at $95bn in a fundraising round in March 2021.
  • Instacart IPO: Online grocery delivery service Instacart is currently valued at $39bn and could be even more when it debuts on the stock market later in 2022. It hasn't yet announced whether it will opt for a traditional IPO or direct listing. The company has raised $265m in private fundraising this year, thanks to the rise in online grocery shopping due to Covid-19.
  • Starlink IPO: Elon Musk's satellite constellation is due to IPO as a spin-off from parent company SpaceX, although it is unknown when the company plans to do this, as Musk is looking for "more predictable cash flows" first. The company is valued at around $42bn or potentially higher, currently generating annual revenues of $10bn.
  • Monzo IPO: British online bank Monzo is joining the fleet of UK tech companies to debut on the stock market in 2022. The unicorn start-up was originally valued at £2bn in 2019 but this was slashed to £1.24bn in 2020 after a fundraising round. CEO TS Anil believes that this figure is undervalued and Monzo could be worth a lot more, so keep an eye out for updates.
  • Virgin Atlantic IPO: Richard Branson is planning an IPO to help its airline company recover from the pandemic, with expected losses of £1bn throughout the period. The stock will most likely list on the London Stock Exchange and could happen as early as 2022.
  • Houzz IPO: American home design website and community Houzz's IPO is eagerly awaited by investors, and there is speculation that the company could choose either an IPO or SPAC route at some point in 2022. Despite dismissing around 10% of its staff last year, the housing sector has experienced new highs in 2021 and Houzz raised $400m in 2017, with an estimated valuation of $4bn.
  • Polestar IPO: Swedish EV manufacturer Polestar, which is a part of the Volvo and Geely group, is planning a SPAC merger with Gores Guggenheim, which should take place at the end of September. The SPAC raised $800m in a fundraising round in May 2021 and the company is expected to be valued at over $20bn, given the rising trend in clean energy and sustainability.
  • Databricks IPO: Software start-up Databricks is an artificial intelligence (AI) powered data company. It has reached a valuation of $38bn after multiple rounds of financing this year from the likes of Fidelity and Franklin Templeton. Its clients include Royal Dutch Shell and AstraZeneca, with an annual recurring revenue of over $600m.
  • Discord IPO: Discord runs an instant messaging platform and app where users can interact over voice, video and text, boasting an audience of over 150 million monthly active users. According to Forbes, the company could be valued up to $17bn, having seen an active year in terms of fundraising.
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How to trade on IPO stock

A number of trading platforms specialise in pre and upcoming IPOs, where you can browse and choose a stock to invest in, before its future IPO is carried out. Once the company is public, however, you can trade it like any other share in the stock market, using financial derivatives, such as futures, forwards and options contracts with the option to trade with leverage.

After a company has passed the IPO process and listed its shares on a stock exchange, it will be available for public trading. With us, traders can speculate on the price movements of the underlying share through spread betting and contracts for difference (CFDs), which are both derivative products. These products allow you to trade on price movements without taking ownership of the asset, so you can either go long or short on your position. In particular, spread betting allows you to trade tax-free* in the UK.

Private companies with an upcoming IPO could include rivals to some of the largest companies in the world, within the technology, renewable energy, e-commerce, and healthcare industries, at the very least.

Recent IPOs

  • Nubank IPO: Brazilian neo-bank Nubank listed on the New York Stock Exchange in December 2021. The company's shares began trading at over $11 apiece, giving it a valuation of almost $50bn. This is an even larger valuation than its main rival in Brazil, financial services company Itaú Unibanco. Trade on our Nu Holdings share price​ here.
  • Braze IPO: US customer engagement software company Braze (formerly Appboy) debuted on the Nasdaq exchange later this year using the stock ticker 'BRZE'. Shares opened 34% above the offer price to bring Braze a valuation of almost $8bn. The company raised $520m in total for the IPO. Trade on our Braze share price here.
  • Rivian IPO: US company Rivian focuses on the manufacturing of electric vehicles and automotive technology. The Amazon-backed business debuted on the Nasdaq exchange on 10 November in the world's largest IPO of 2021, giving it a valuation of over $100bn. The stock jumped more than 30% on its first day of trading. It's now the second most valuable automaker in the US after Tesla, above Ford and General Motors. Trade on our Rivian share price here.
  • NerdWallet IPO: Personal finance website NerdWallet listed on the Nasdaq on 4 November 2021 with a mid-point share price of $18, soaring by 91% by the end of the trading day to give the company a valuation of almost $2bn. This comes after a successful year for financial IPOs. This year, revenues have sped up slightly to $181.6m in the first half of 2021, in comparison with $137.3m in 2020, representing a growth of 32%. Trade on our NerdWallet share price here.
  • Allbirds IPO: Eco-friendly shoemaker Allbirds is a leader in sustainable footwear that listed on the Nasdaq exchange early November 2021. The company debuted at $15 per share, which was above its predicted range, valuing the company at over $2bn. Allbirds recorded a top performing year in 2020 in terms of revenue, opening its first brick-and-mortar stores in the process. Trade on our Allbirds share price here.
  • GlobalFoundries IPO: New York-based semiconductor company GlobalFoundries debuted on the Nasdaq exchange on 28 October 2021. The chipmaker has experienced a successful year with a 13% revenue increase up from 2020, due to the semiconductor shortage. It opened at a share price of $47 and valuation of over $25bn. Trade on our GlobalFoundries share price here.
  • Olaplex IPO: One of the largest independent hair care brands in the world, Olaplex is owned by parent company and private equity firm, Advent. The company opened on the Nasdaq at a higher than expected price of $25 per share, giving the company an overall valuation of $15.6bn. Trade on our Olaplex share price here.
  • Volvo IPO: Swedish luxury car manufacturer Volvo Cars is owned by parent company Geely, who raised over $2.3bn in one of the biggest listings in Europe of 2021. It has listed on the Nasdaq Stockholm stock exchange and shares jumped as much as 22% on its opening day. The automotive company plans to shift its entire car range to fully-electric models by 2030. Trade on our Volvo share price here.
  • GitLab IPO: GitHub competitor GitLab is a DevOps platform that aims to reduce the software development cycle, with over 100,000 customers in 55 countries. It listed on the Nasdaq on 14 October under the ticker 'GTLB' after a successful year, with an annual revenue growth of 143%. The company is now valued at approximately $16.5bn. Trade on our GitLab share price here.
  • Oxford Nanopore IPO: Oxford Nanopore Technologies is a provider of rapid Covid-19 tests to Britain's national health service. The company free floated of at least 25% of its shares on the London Stock Exchange in early October, reaching a valuation of almost £5bn as its share price surged by 45% upon debut. Trade on our Oxford Nanopore share price here.
  • Duolingo IPO: Language-learning company Duolingo, which operates primarily through its app, has witnessed a 97% revenue growth year over year. It listed on the Nasdaq exchange on 28 July at $141 per share, a much higher figure than its initial pricing of $102. Duolingo closed up by 36% at the end of the day, giving the company an estimated valuation of $6.5bn. Trade on our Duolingo share price here.
  • Robinhood IPO: US stock and options trading app Robinhood has grown its user base by a third this year and it is valued at around $35bn. Robinhood debuted on the NASDAQ exchange, a popular choice for technology companies, at the lower end of its share offering of $38 apiece. Trade on our Robinhood share price here.
  • Bridgepoint IPO: Private equity firm Bridgepoint has joined a rare collection of UK buyout companies listed on the London Stock Exchange. Its IPO raised over £780m to give the company an overall valuation of £2.9bn or even higher, given that its stock jumped over 28% on its debut day of trading. Trade on our Bridgepoint share price here.
  • Seraphim Space IPO: Seraphim Space Investment Trust is a new fund that gives investors access to 15+ privately-held companies within the space sector. The company debuted on the London Stock Exchange on 14 July 2021, raising £178m through pricing 180 million shares at 100p each. Richard Branson is said to be an early investor since the IPO. Trade on our Seraphim Space Investment Trust share price here.
  • Wise IPO: One of the most eagerly awaited fintech IPOs, the online payments service Wise (formerly known as TransferWise) offered its shares to the public on 7 July 2021 on the London Stock Exchange. The British company has experienced rapid international growth over the past couple of years. Wise shares opened at 800p and were up 10% by the end of its debut trading day, giving it a valuation of over £8bn. Trade on our Wise share price here.
  • Krispy Kreme IPO: American doughnut leader Krispy Kreme returned to the stock market in early July 2021. The company first went public in 2000 and was bought by a private investment company in 2016 after filing for bankruptcy. The company raised over $500m and opened at a lower share price than it originally planned at $16.30 apiece. However, the stock quickly jumped up to $21 on its first day, giving the company an overall valuation of around $3.4bn. Trade on our Krispy Kreme share price here.
  • Didi IPO: Chinese ride-hailing company had its IPO on 30 June 2021, raising $4.4bn in the process. It was the largest US listing of a Chinese company since Alibaba in 2014. The company sold over 316m shares at $14 apiece, giving it an overall valuation of approximately $70bn. Trade on our Didi share price here.
  • Full Truck Alliance IPO: The leading Chinese online freight platform raised over $1.5bn in its IPO in June 2021 by selling over 82.5m American depositary shares. Its stock jumped around 15% upon opening on the New York Stock Exchange. Trade on our Full Truck Alliance share price here.

IPO investing platform

To trade on the price movements of an upcoming IPO stock after it has passed the process, our online trading platform, Next Generation, offers spread betting and CFD trading on 9,000+ stocks and 1,000+ ETFs. It is a simple process to register for a live account and start trading the share market now.

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IPO news

You can also keep up to date with the latest news and analysis for the stock market, as we keep our online platform updated with daily reports and predictions from our professional market analysts. Alternatively, if you would like to see data from external news providers, our news and insights section offers fundamental analysis stock reports from Morningstar and live updates on the share market from Reuters.

FAQS

Are IPOs a good investment?

IPOs offer a good way to get involved in newly-listed shares of a company that has been private, especially if the company fundamentals are promising. However, there is no guarantee of future success. Learn more about conducting company analysis.

Can I short IPO stock on the first day?

Some trading restrictions usually apply after an IPO has gone live, so you may not be able to short the stock on its first day of trading. This will usually last for a few days. Learn how to short a stock.

What’s the difference between a traditional IPO and a SPAC IPO?

The main differences between traditional initial public offerings (IPOs) and special purpose acquisition companies (SPACs) lie in their pricing and the length of the process. SPACs usually work on a shorter timeline and have smaller underwriting fees. Read more about SPACs.

Who sets the price of an IPO?

Investment banks and underwriters usually set the IPO price. Usually, the company will decide how many shares it wants to make available to the public, and then the nominated bookrunner will conduct a valuation of the company.

Can you lose money trading on IPO stock?

You can lose money when trading on newly-listed IPO stock if the company underperforms and either opens or closes at a lower price than expected. You should therefore consider using risk-management controls, such as stop-loss orders, to manage your risk.

*Tax treatment depends on individual circumstances and can change or may differ in a jurisdiction other than the UK​.​

Disclaimer: CMC Markets is an execution-only service provider. The material (whether or not it states any opinions) is for general information purposes only, and does not take into account your personal circumstances or objectives. Nothing in this material is (or should be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by CMC Markets or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although we are not specifically prevented from dealing before providing this material, we do not seek to take advantage of the material prior to its dissemination.

*FSCS is an independent body that offers protection to customers of financial services firms that have failed. The compensation amount may be up to £85,000 per eligible person, per firm. Eligibility conditions apply. Please contact the FSCS for more information.

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