Special purpose acquisition companies (SPACs), also known as “blank-check companies,” upstaged initial public offerings last year in a rare turn of events. In 2020, SPAC IPOs attracted approximately twice as many funds as the SPACs of the entire last decade, and exceeded 2019’s totals by March 2021. However, due to regulatory activity concerning SPACs, traditional IPOs are back in business.
Last year’s 474 IPOs raked in more than $155 billion. That figure has already been overshadowed this year and then some. And investing in these IPOs has become very easy, thanks to the Robinhood (NASDAQ:HOOD) platform.
To give everyday investors a chance to get in on the ground floor of new companies, Robinhood is offering IPO access — giving its members access before and after big initial public offerings. This feature gives smaller traders who might not have been able to get involved otherwise their turn at investing alongside institutions or wealthier buyers earlier in the stock’s life cycle.
Thanks to a new feature, Robinhood traders have the chance to examine imminent IPOs, place a request for shares in an initial listing price range, and ultimately greenlight their acquisition once it’s set. The company says it won’t prioritize customer access based on account size or order amount — everybody gets equal treatment.
It could not have come a moment too soon. Several promising companies could debut at any moment. These enterprises have solid business models, filed their prospectuses, and lined up their investment banks.
- iFit Health & Fitness
- Allbirds
- Fresh Market Holdings
IPOs to Watch: iFit Health & Fitness
iFit Health and Fitness is the top fitness equipment provider in America. The Logan, UT-based company operates through several popular brands like iFit, NordicTrack, and ProForm. These brands collectively helped generate revenue of more than $1.7 billion for fiscal year 2021, ended May 31.
Apart from equipment sales, the company has also been conscious of moving with the times. That’s why it now has a monthly class subscription platform. You can now take advantage of its cloud service, which will allow access from any location. It also allows for better tracking in terms of exercise regimens because biometric data like heart rate monitoring or muscle tension levels are collected during training sessions. That helps users know what’s working best with regard towards weight-loss goals, fitness targets and more.
iFit Health & Fitness was expected to go public earlier this month. However, the company decided to delay the offering citing adverse market conditions. The company had filed to rake in $600 million by offering 30.8 million shares within a range of between $18 and $21. It still plans to list shares on the Nasdaq exchange under the symbol “IFIT.”
Allbirds
One of the more interesting companies to file for an IPO recently is Allbirds. A noted pioneer for athletic shoe manufacturing, this innovative startup aims to disrupt both fashion trends and traditional streetwear by creating products using only naturally derived materials, such as fiber, sugarcane, and crab shells.
Allbirds is trying to cash in on the growing demand for sustainable products, especially among Millennials and Gen Z. However, the company is unprofitable. It will irk investors, especially considering it’s targeting a niche. Per SEC documents, it finished with a loss of $14.5 million in 2019, which then widened to $25.9 million in 2020. More recently, Allbirds posted a loss of $21.1 million for the six months ended Jun 30.
However, on the bright side, revenues are moving in the right direction. In 2020, the top line jumped to $219.3 million, up from $193.7 million last year. More recently, for the first half of the year, revenue came in at $117.5 million.
Digital sales in 2020 reached an astounding $194.6 million last year, which is 89% of total company revenue. The Covid-19 pandemic caused shoppers to abandon traditional brick-and-mortar stores for online purchasing; Allbirds has been among the beneficiaries as consumers felt more comfortable buying their clothes online. Nevertheless, Allbirds has indicated that it wants a greater physical presence; it operates 27 physical stores right now.
Shares are expected to list on the Nasdaq exchange using the ticker “BIRD.” Filing documents for the IPO took place on Aug. 31.
IPOs to Watch: Fresh Market Holdings
The Fresh Market is a gourmet grocery store chain taking a second stab at the markets, after going public in 2010. However, it couldn’t match the operational capacity of high-growth companies like Kroger (NYSE:KR). After a few years of struggle, private equity giant Apollo Global Management (NYSE:APO) took Fresh Market private in a $1.4 billion transaction in 2016.
But now Fresh Market is set to go public again. The company’s IPO paperwork was officially filed on July 16, with an offering amount of $100 million.
Fresh Market has not laid down a specific date for the IPO. However, shares will eventually list on Nasdaq under the ticker TFM. On the internal front, the grocer is doing very well, finishing with revenues of $1.9 billion for the fiscal year that ended in April 2021. This is likely just a taste of what’s to come as it continues expanding its business into new markets across North America.
On the publication date, Faizan Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.
