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IPO Market Outlook 2024: 3 Hot New Stocks Coming in Q1

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The market for initial public offerings (IPO) looks to be heating up. Adena Friedman, the CEO of the Nasdaq (NASDAQ:NDAQ) stock exchange, recently made headlines when she said that close to 100 companies have filed confidentiality to hold IPOs this year. If accurate, that would represent a major turn around for new stock issuance, which has been stagnant over the past two years. In fact, 2022 and 2023 were the slowest period for IPOs in more than 40 years, with only nine technology IPOs held in 2023, and six in 2022, down from 121 such deals in 2021 during the last bull market. Friedman, and others, see a rebound this year amid more favorable market conditions that include declining inflation and interest rates, as well as a stock market that is currently at an all-time high. Here are three stocks from the IPO market 2024 outlook.

IPO Market 2024: Reddit

Reddit Layoffs. Phone showing Reddit logo on screen in front of blurred background with reddit logo. Reddit IPO. AI Stocks

Source: Ink Drop / Shutterstock

According to media reports, U.S. social media platform Reddit is preparing to hold its IPO in March of this year. It would be the first stock issuance from a major U.S. social media company since Pinterest’s (NYSE:PINS) market debut in 2019. Debuting in 2005, Reddit runs online message boards and generates most of its revenue from online advertising. It has yet to turn a profit. However, the company, with a $10 billion valuation in previous funding rounds, is looking to sell about 10% of its shares.

Reddit has been wanting to hold its IPO for three years but repeatedly delayed it due to the Covid-19 pandemic and bear market that occurred in 2022. The company is reportedly planning to make its regulatory filing in late February, hold its roadshow in early March, and complete the IPO by the end of March this year. Reddit will likely list its stock on the Nasdaq exchange, though the ticker symbol the company plans to use is currently unknown.

Amer Sports

Various sports equipment like a football, soccer ball and volleyball on green grass.

Source: Shutterstock

Amer Sports, which is best known as the maker of Wilson tennis rackets, is planning to go public in the U.S. at a valuation of $8.7 billion by the end of February. The company, which is based in Helsinki, Finland and also makes Arc’teryx running shoes and Atomic skis, is associated with several high-profile professional athletes including tennis player Roger Federer and NFL quarterback Russell Wilson. The company plans to sell 100 million shares priced between $16 and $18 on the New York Stock Exchange.

Founded in 1950, Amer Sports operates three business segments and is home to sports and outdoor brands that also include Salomon and Peak Performance. Financial details have yet to be released, but in a previous funding round Amer Sports’ valuation was close to $9 billion. The company plans to use the ticker symbol “AS” on New York’s big board. An exact date for the IPO has not been set, but Amer Sports has said that it plans to price the share sale by the end of January and begin trading in February this year.

Shein

A Shein sign on the window of a large corporate building.

Source: Uskarp / Shutterstock.com

Chinese fashion company Shein filed to hold an IPO in the U.S. before Christmas last year. The retailer, which is extremely popular in Asia, was last valued at $66 billion and is expected to start trading by the end of Q1. Shein has been growing rapidly due to the popularity of its clothing designs and inexpensive prices. Headquartered in Singapore, the company has reportedly hired Goldman Sachs (NYSE:GS) and Morgan Stanley (NYSE:MS) to lead its IPO.

However, recent reports say the company, which continues to have a large presence in China, is seeking permission from regulators in Beijing to hold a U.S. IPO. In recent years, officials in China have scuttled plans for Chinese companies to list shares on foreign stock exchanges. Whether the IPO takes place, and its exact date and dollar value, are not yet known. However, if it does occur, Shein’s IPO could be one of the biggest of the year.

On the date of publication, Joel Baglole 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.

Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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