These Are the Upcoming IPOs to Watch in 2019—and Early 2020
It’s been a big year for high-profile IPOs.
Still, the year that gave investors the likes of Uber, Slack and Beyond Meat is just getting started, according to Wall Street insiders, and several prominent companies are slated to debut at the end of 2019 or early in 2020.
“This has been the year when cloud-based companies and on-demand services came of age,” Santosh Rao, head of research at Manhattan Venture Partners, told Fortune.
Investors have been bullish on a whole host of companies making their public debut this year—in a variety of fields. Matthew Kennedy, senior IPO market strategist at Renaissance Capital, a provider of institutional research and IPO ETFs, says 2019 has been the year of “high-valued tech companies.”
Kennedy says the 2nd quarter saw 20 tech companies raise almost $15 billion—and that, in the last five years, “only one other quarter has had $10 billion or more [raised] in the tech sector,” he said.
But zooming out, Rao suggests 2019 in particular has been a “perfect setup for an IPO” due to a hunt for high-growth stocks, scarcity of large companies coming to market and the fact that investors “don’t want to miss out” on the next big IPO, Rao says. And, he believes, companies are equally aware of the rush to market—”You don’t know when the party’s going to end.”
Still, while it’s clear investors are hungry for IPOs, Rao says the market has some criteria. “[IPOs this year] need to show two things. One, their top-line is growing, and second, there is definitely a path to profitability,” he says.
Here are seven not-to-be-missed IPOs expected to debut this year (or early next).
1. The We Company (TBD)
The We Company (formerly known as WeWork) kept pushing off their long-awaited IPO—and officially announced they are withdrawing their S-1 filing on Monday. Following myriad problems plaguing the coworking company—including corporate governance issues, a sky-high private valuation, and hefty liabilities—investors lost their appetite for the offering altogether, and We Co. threw in the towel (for now).
The workspace rental company was arguably one of the most heavily-anticipated companies to debut this year, but now it looks as though insiders and investors won’t get the chance to cash out until next year at least. The company was last privately valued at $47 billion, but has recently been rumored to be going for as little as $10 billion—much to insider SoftBank’s chagrin. WeWork’s losses last year surmounted even Uber’s: it lost $1.9 billion on $1.8 billion revenue.
“I would be worried about WeWork if they don’t have a clear path to profitability,” Kennedy says. “I think they could run into some of the same issues that investors had with Lyft and Uber.”
2. Airbnb (2020)
The home-rental app has long been in the spotlight for an IPO, and the company just announced it would file for its IPO in 2020. Now that the company says it’s regularly profitable on an EBITDA level, Airbnb seems set for its long-awaited debut. The company claimed they made “substantially more” than $1 billion in revenue in the 3rd quarter of 2018, and as per its last funding round in 2017, is valued at some $31 billion.
Several experts suggest that the company’s cash and current profitability could make it a prime candidate for the now in-vogue direct listing.
Rao says the two things a company needs to be a good candidate for a direct listing are not needing cash immediately and being a household name. He believes Airbnb has both.
In a similar vein as Uber, Rao thinks “Airbnb is going to be the next big event.”
3. Peloton (TBD)
The so-called “Netflix for fitness” Peloton is planning to become public by year’s end.
Founded in 2012, the cycle and treadmill maker confidentially filed for an IPO in June with its latest valuation over $4 billion. But its losses are hefty—losing $196 million on sales of $915 million during the 12 months ended June 30. And in a similar vein as 2019’s biggest IPOs, Peloton is unprofitable.
The fitness company has risen in popularity in recent years, but Rao claims it’s still a “niche player.”
“There’s a very thin line separating fad from a long-term trend, so hopefully this is not something people get tired of,” Rao said. He adds that Peloton’s upfront investment is big and that their new digital membership plan is a plus, but that the company needs to sort out its intellectual property issues (notably lawsuits with Flywheel Sports over possible patent infringement)—and profitability issues.
4. Postmates (TBD)
You may soon be able to have Postmates shares delivered on-demand.
The Uber Eats challenger’s latest valuation puts the company at close to the $2 billion mark after receiving an additional $100 million in investment earlier this year. The company confidentially filed for an IPO back in February.
While the delivery company is reportedly still unprofitable, according to co-founder and CEO Bastian Lehmann last year, the executive seems bullish on its potential as a public company. “I think [Postmates] is a great American brand that deserves to be public, and we really like 2019,” Lehmann told CNBC last year.
5. Robinhood (TBD)
Although the millennial trading app hasn’t settled on an exact date yet, Robinhood is supposedly planning to start trading its own shares.
The trading app’s CEO Baiju Bhatt confirmed Robinhood is planning for an IPO, and hired Jason Warnick as their CFO last year.
The company is on track for a $7 to $8 billion valuation due to recent investment of around $200 million, CNBC reported in May. However, the official IPO date is yet to be determined.
6. Casper (TBD)
Don’t sleep on this mattress company.
Mattress retailer Casper was recently valued at over $1.1 billion after raising an additional $100 million in March.
According to leaked financials by The Information in March, Casper projected a year-over-year increase in revenues of 49% for 2018, and the company says they made nearly $400 million in revenue last year.
While their IPO date is still being determined, investors may be encouraged by the performance of Casper’s peers’ stock—two of which, Tempur Sealy and Purple Innovation, are up 50% and 5% this year respectively.
Casper began the search for IPO underwriters in March, CNBC reported.
7. Aramco (2020)
The world’s most profitable company is planning to IPO next year.
Aramco, the Saudi Arabian titan of oil, is seeking a stunning $2 trillion valuation, but its hefty price tag may be hard to get in the current market. The recent drone attacks on Saudi oil production facilities set Aramco back daily production of 5.7 million barrels—and may throw Aramco’s valuation into question. Saudi Crown Prince Mohammed bin Salman previously considered debuting the stock in the U.S., but had concerns over regulations, according to reports.
The Saudi oil giant reportedly hired nine banks to help lead the IPO.
More must-read stories from Fortune:
—Are we near a recession? The godfather of the inverted yield curve says it’s “code red”
—Passive investing has exploded. But here’s why fears of a bubble are overblown
—Why the next recession may feel very different than 2008
—Social Security increases in 2020 will be noticeably smaller than this year
—U.S. recession indicators haven’t made up their minds
Don’t miss the daily Term Sheet, Fortune’s newsletter on deals and dealmakers.