2021 saw some major fintech IPOs, but hopes of 2022 matching or eclipsing last year's performance appear to be fading.
Last year marked several significant milestones for fintech IPOs, but could 2022 see the floodgates open up further as more fintechs go public?
2022 had looked set to be rich with listings, but recently some fintechs who had earmarked 2022 for their flotations already appear to be rowing back on their plans.
Meanwhile, commentators have cited the bountiful funds available on the private markets, and the share price falls of just-listed fintechs as deterrents that could stop 2022 from being a bumper year for listings.
For example, Robinhood’s shares are now priced at $17, a precipitous fall on its $38 initial public offering price, while PensionBee's shares are now priced at 130p, compared to their float offer price of 165p.
“I don’t think 2022 will see a dramatic increase of fintech public offerings," Chip CEO Simon Rabin told AltFi.
“There is still a lot of venture and crowd backing in the market (as 2021 has shown). Fintechs, therefore, are focusing on growth and honing a sustainable business model rather than needing to go public. I do think, however, we will start to see more acquisitions as the bigger fintechs start to landgrab."
Josh Levy, CEO of Ultimate Finance, said the UK's on-again, off-again trading uncertainty would continue to deter fintech IPOs.
“The UK market still has much to prove in terms of the sustainability of fintech valuations post IPO when compared to the wall of private capital that remains available and wanting to be deployed," he said. “Some of the notable 2021 listings have failed to maintain promising early trading and have fallen behind the initial float price, and this threats to remain a drag on sentiment.”
So which fintechs are on track to IPO in 2022? Which are considering an IPO, but haven't set a timescale? And which are unlikely to IPO... but still could?
In June this year, the CEO of Zopa, Jaidev Janardana, told AltFi he plans to take Zopa public as early as the last quarter of 2022.
In October, it said it had raised £220m ahead of its IPO, and Janardana told The Financial Times the capital raised would "fund the growth of the balance sheet" and "also means we can be more flexible in our timing" of its London IPO. He said the earliest date for the IPO would be the fourth quarter of 2022.
A Sky News report said that owners BC Partners and Pollen Street Capital, the two private equity firms that each own 50 per cent of Shawbrook, are talking to investment banks about a potential 2022 initial public offering (IPO).
Sources suggested that it could be worth well over £1bn in a flotation, with the company having more than doubled its profits since BC Partners and Pollen Street Capital invested.
Klarna has said that the buy now, pay later juggernaut does plan to list, but a recent interview with its co-founder and CEO suggests it might not be imminent.
In an interview with CNBC, published in September, Sebastian Siemiatkowski said: “The volatility in the market right now makes me nervous to IPO to be honest. I think it would be nice to IPO when it’s a little bit more sound. And right now, it doesn’t feel really sound out there.”
Another to go on record is Checkout.com CEO and founder Guillaume Pousaz who said of the payments company that “I do think that eventually, a listing will be the right path for Checkout.com”.
But he cautioned that the payments firm was "still a few years from listing" and the "exact form is still to be determined". He added the focus in the short term was on growing the business.
In September, Storonsky told Bloomberg: “To be able to IPO successfully, we need to be at least in the few billion dollars range of revenue a year."
Revolut’s adjusted annual revenue was £261m ($359m) in 2020.
Stripe is another fintech widely touted as soon to go public: a report in Bloomberg said that Stripe was in early talks with investment banks about going public as early as 2022.
But an interview with its co-founder appeared to suggest otherwise.
In November, John Collison told CNBC: “We’re very happy as a private company."
“Part of where our patience stems from is the fact that it feels like we are very early in Stripe’s journey.”
Meanwhile, San Francisco digital bank Chime is said to be in talks to go public and is targeting March 2022 for the IPO, although Chime has not publicly commented on this.
A report in the WSJ said a $750 million raise, announced in August, positioned it for a potential IPO in the first half of 2022, citing sources familiar with the IPO.
Plaid is another listing candidate, following its failed sale to Visa.
A report earlier this year said the fintech is more likely to go public via a traditional initial public offering, a special purpose acquisition vehicle, or a direct listing.
But Plaid has not publicly commented, and there has not been further speculation.
Swedish payment firm Trustly was due to go public- in one of the biggest by a European fintech in 2021- but has reportedly postponed its plans indefinitely after regulators raised concerns about its due diligence.
The Swedish payments firm, which was due to list on the Nasdaq Stockholm, exchange, said it is still aiming for a stock market listing, but there is currently no firm timeline.
And also, money transfer startup WorldRemit is thought to be teeing up a potential initial public offering (IPO), but has not commented publicly.
A report in Bloomberg said WorldRemit was looking to raise cash at a valuation of about $5 billion ahead of a potential initial public offering (IPO), which could come as early as 2022.
So there you have it, the most and least likely IPO candidates for 2022. Did we miss anyone out? Let us know on Twitter @AltFiNews