Pamela Cruz. Peninsula 360 Press [P360].
Several California-based technology companies announced plans to list on the New York Stock Exchange before the end of the year, taking advantage of a market rally following the election, as well as mobility restrictions and remote working.
Firms such as DoorDash, Airbnb, Roblox and Wish, are taking advantage of a market rally after the November 3 elections, which has raised stock indices close to their historical highs, leading to a clear demand in the public market.
Similarly, these companies involved in e-commerce, food delivery and online entertainment, expect to have a busy year-end, with the increase in cases of coronavirus and an economy that has had to adapt to more digital habits.
Without a doubt, the most anticipated IPO is that of Airbnb, through which it hopes to raise three billion dollars by selling its shares, despite the fact that the firm has been severely affected by the pandemic and its outlook looked uncertain for the future.
It should be noted that Airbnb expected to make its public offering in early 2020, but the business was halted at the end of March. However, it is currently showing a revival as mobility restrictions are lifted, with users choosing to work remotely in holiday homes.
On the other hand, DoorDash is a company similar to Rappi, which operates in the United States and Canada. The firm has been valued at $16 billion and became one of the big winners with the containment measures, which have led people to place more food orders at home.
Thus, for the first nine months of the year, the number of orders rose to 543 million, compared to 181 million for the same period in 2019; while revenues rose from $239 million to $879 million for the period.
As for Roblox, it is one of the video game companies that has registered the highest growth during the pandemic, as its revenues grew 91 percent in the third quarter of 2020, to just over $242 million.
In addition, its daily active users reached 36.2 million in September and game hours doubled to more than eight thousand, as people spend more time at home, and can even organize virtual birthday parties and other meetings in the app.
Finally, the popular e-commerce company Wish, is a firm that is valued at just over 11 billion and has over 100 million active users. Its third quarter revenues increased 33 percent to 606 million.
Wish was exposed during the early days of the pandemic because most of its traders are based in China, so the interruption in deliveries caused revenues to fall in the first quarter of the year, but they are seeing a recovery.
2021 also looks like a promising year for IPOs on Wall Street, with investors waiting for the online brokerage firm RobinHood to make its debut during the first half of next year.
