Image Source: Kevin Smith on Flickr

IPOs had a record-breaking run in 2021, with initial public offerings raising more money than ever before that year. According to Dealogic, IPOs had totaled over $301 billion collectively in 2021, easily surpassing the $168 billion raised in 2020. While many had high hopes for 2022, it proved to be the complete opposite.

Only 83 traditional IPOs were priced in last year, raising just $8.5 billion as of Dec. 9, according to Dealogic. It was even worse for special purpose acquisition companies as the SPAC-craze faded. A mix of rising inflation and interest hikes have hurt the stock market and left investors with little appetite for high-growth IPO candidates.

2023 seems like it may bring more of the same, but some analysts expect the activity to pick up in the second half of the year. Here are some potential IPOs expected in 2023.

1. Instacart

Grocery-delivery company Instacart has been in the spotlight for a while now as most expected it to hold an initial public offering in 2022. However, the food delivery company pulled its plans to go public last year after filing papers for a so-called confidential filing, as it awaits more favorable market conditions to go public. Instacart competes with offerings from Amazon (AMZN), Uber (UBER), and DoorDash (DASH).

2. Fanatics

Fanatics is not only preparing to enter into the legal sports betting market as BetFanatics is set to launch in seven states come January, but the apparel and trading card company has also met with Wall Street analysts, hinting at a potential move to go public.

Publicly traded companies in the online sports betting space include Boyd Gaming (BYD), Caesars (CZR), Churchill Downs (CHDN), DraftKings (DKNG), Flutter Entertainment (PDYPY), Gan Limited (GAN), Las Vegas Sands (LVS), MGM Resorts (MGM), Penn Entertainment (PENN), William Hill (WIMHY), and Wynn Resorts (WYNN).

3. Databricks

Another name rumored to be eyeing a public debut in 2023 is the data-focused software company Databricks. The artificial intelligence-powered data analytics company operates in over 12 countries, with over 40% of the Fortune 500 using its platform.

4. Epic Games

Epic Games is a video game developer, responsible for titles such as Infinity Blade, Gears of War, and the Fortnite franchise. While many believe the company will eventually go public, no concrete plans have been announced. Public traded companies in the space include Activision Blizzard (ATVI), Electronic Arts (EA), and Ubisoft (UBSFY).

5. Reddit

After the company filed confidentially with the SEC in late 2021, many have been eagerly waiting for Reddit to go public. However, 2022 is gone and no new announcements have been made. An IPO could value the company at $15 billion, it has been estimated.

6. Discord

Discord has yet to file for an IPO with the SEC, but one occurring in 2023 seems to be increasingly probable now, according to several news reports. Of note, the company's user base has surged during the pandemic, and Discord turned down a $12 billion buyout back in 2021. Its valuation is estimated at $15 billion.

7. TripActions

Back in September of 2022, it was said that TripActions had filed confidentially to go public in the second quarter of 2023 at a $12 billion valuation. A month later, the corporate travel and expenses company raised a combination of equity and debt at a post-money valuation of $9.2 billion.

8. Stripe

Stripe, one of the fastest growing fintech companies, has previously said that it is in no rush to go public, but many believe it may happen in 2023. In its last round of funding, the online payment company's valuation stood at $95 billion.

9. TikTok

TikTok's IPO may not be imminent, but many believe it could come at some point in 2023 despite the weak market sentiment. TikTok has quickly become a major threat to social media incumbents like Facebook (META) and YouTube (GOOGL), but it has also come under growing scrutiny from Washington over data security.

10. Chime

Founded in 2013, Chime provides mobile banking services to customers in the U.S. and is partnered with Bancorp Bank and Stride Bank, which operate the accounts for them. Like other "neobanks," Chime does not have physical branches. The company had originally planned to go public back in March of 2022, but the plans were pushed back. With the calendar having now flipped, an IPO in 2023 is seeming like the most likely scenario.

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