With different IPOs expected to hit the market this week, Maxim Manturov, Head of Investment Research at Freedom Finance Europe, explains why all eyes should be on Alkami, AppLovin, and TuSimple.
We’re currently seeing a growing number of organisations planning an initial public offering (IPO) but amid all the speculation there are three that stand out for me. Alkami, AppLovin, and TuSimple each offer something different that make them stand out against the competition and this is why they should be worth keeping an eye out for.
While a growing number of organisations have been negatively impacted by the pandemic, Alkami has benefited with an increasing number of banks and credit unions looking for online options following the shift to digital. Smaller banks usually do not have the capacity and funds to develop effective digital platforms internally so they are relying on third-party providers like Alkami.
In 2020 alone the company reached nearly 10 million digital users and surpassed more than $130m of annual revenue, which is no surprise considering 160 financial institutions currently use Alkami’s banking software – and this number isn’t planning to reduce anytime soon. Alkami is looking to raise $168m by offering six million shares of its common stock expected to be priced at between $26-$28 each, which could value the firm at more than $2.3bn when it hits the market on April 13th.
AppLovin, a mobile gaming company, is aiming to make a dent in the $200bn mobile app market by targeting a valuation of more than $30bn for its IPO on April 14th, expecting to price its shares between $75 – $85 each.
Following a surge in demand for videos games during the pandemic the company’s revenue grew by 46% in 2020 to $1.45bn and it still has further plans to grow and on a much larger scale. Recently, AppLovin announced plans to acquire Germany-based mobile-app measurement and marketing company Adjust for an unconfirmed $1 billion. Further still, in May 2020 AppLovin also acquired another mobile game developer, Machine Zone. Therefore, it’s no surprise that the Californian based company has seen its app usage grow to almost 32 million people per day, offering its customers over 200 free-to-play mobile games from 12 studios.
Finally, the last IPO to watch out for this week is TuSimple, who will be hitting the market on 14th April. The self-driving truck software maker is expected to raise up to $1.5bn with share prices predicted to range between $35 – $39. The company has major plans for growth over the next few years and by 2024 it aims to produce self-driving semis for commercial use in the U.S. in partnership with Navistar. In the past four months alone, Navistar has received 5,700 reservations for these purpose-built autonomous trucks using TuSimple technology.
Since its inception in 2015 TuSimple has raised more than $800m from investors, allowing it to gain momentum in the self-driving truck race.