search icon
      blog search icon

      Best IPO Stocks To Invest In 2022-2023 - Stocks Telegraph

      By Wasim Omar

      Published on

      July 18, 2022

      8:29 AM UTC

      Last Updated on

      August 1, 2023

      12:33 PM UTC

      Best IPO Stocks To Invest In 2022-2023 - Stocks Telegraph

      2021 saw the economy shoot up in a recovery mode, following the world’s transition into post-Covid normalcy.

      With the relaxation of pandemic-related restrictions and the mass distribution of effective vaccines, industries saw an epic resurrection, with the financial markets buzzing with activity once again.

      2021 also brought with it a staggering number of IPOs to invest in, with over $300 billion poured into companies initiating a trade.

      This amount crushed previous records, and thus 2021 had been labeled by many as being the year of the IPO.

      With 2022 pushing stocks into a bear market and the threats of a looming recession, investors are now more cautious about which IPOs to consider.

      For all the growth opportunities the best IPO stocks offer, a thorough risk assessment is crucial to undertake.

      Here we present some of the best IPO stocks of 2022 and 2023 to consider for an investment, in light of wider market concerns.

      What Is An IPO?

      So, you’ve heard the buzz about IPOs, but what exactly are they?

      An IPO, short for “Initial Public Offering,” is like a company’s grand entrance into the stock market.

      Imagine a budding startup or a well-established private company that has grown to a point where it feels confident enough to spread its wings and soar into the public market.

      So, the company decides to offer a portion of its ownership, in the form of shares, to the general public for the first time.

      Why is this important for you to know? Simple! the best IPO stocks can be a golden opportunity to get in on the ground floor of promising new ventures.

      They can lead to significant potential returns but come with risks.

      So, understanding IPOs can help you make informed investment decisions and, who knows, maybe even uncover the next big thing!

      Let’s dive into the best IPO stocks to consider for 2022-2023!

      When And How to Buy IPO Stocks

      We now dive into the finer details of how to get your hands on the best IPO stocks! Timing is crucial when it comes to investing in IPOs.

      First off, keep an eye on the company’s prospectus release date. Once the IPO hits the market, acting swiftly, but not impulsively is essential.

      Assess the company’s financials, growth potential, and overall market conditions. You’ll need a brokerage account with access to IPO offerings to buy the best IPO stocks.

      Some brokerages allow retail investors to participate, so check with your platform.

      Be ready to submit your order as soon as the trading begins, as IPO stocks can be volatile early on. Remember, do your homework, stay patient, and invest only what you can afford to systematic risk. Happy IPO hunting!

      IPO News & Analysis

      Let’s chat about the IPO scene in 2023. It’s been a bit quiet, with only 42 IPOs in the US by July, compared to 148 last year.

      IPO News Analysis

      Several factors play into this, like rising interest rates, inflation, and the ongoing Ukraine war.

      But don’t lose hope. There are some exciting IPOs on the horizon! Keep an eye out for Stripe, Databricks, Reddit, Instacart, and Discord.

      These companies are well-funded and have strong growth potential, and are among the best IPO stocks.

      To gauge their success, keep an eye on the overall economy, interest rates, and stock market performance.

      If things align, we might see a comeback in the IPO market later this year.

      Risks And Rewards of Buying IPO Stocks

      It’s time to get real about the exciting world of IPOs! Investing in Initial Public Offerings can be like riding a roller coaster – it comes with its thrills and spills.

      Risks And Rewards Of Buying IPO Stocks

      We now lay out the rewards and risks of buying IPO stocks, so you can make informed decisions:

      Rewards Risks
      Growth Potential

      IPOs are like the fresh-faced newcomers of the stock market. They’re young and full of potential, like those budding start-ups with big dreams.

      Investing early in an IPO means you could ride the wave of their growth as they conquer new markets and rake in profits.


      Buckle up, investors, because IPO stocks can be wild.

      With high volatility, prices can swing like crazy in just a short time due to the impact of beta.

      Access to Innovators

      IPOs usually belong to companies with cutting-edge ideas and cool innovations. Think about it – you get to be part of something new and exciting!

      Envision yourself bragging to your friends that you put your money into that incredible tech company before it skyrocketed.

      Lack of Historical Data

      So, here’s the thing – when you invest in a seasoned company, you’ve got loads of historical data to dig into. But with IPOs, that data is limited.

      This enhances the risk by a considerable degree.

      Public Visibility

      Going public is like stepping into the spotlight for these companies. It’s like turning on a giant neon sign that says, “Hey world, check us out!”

      And that newfound attention could boost the company’s reputation, attracting more customers and partners. Plus, that attention might lead to a boost in the stock price

      Lock-up Periods

      Company insiders are usually restricted from selling their shares for a specified period (lock-up period) after the IPO.

      Once the lock-up expires, a flood of additional shares hitting the market can drive the price down.

      Early Bird Advantage

      Picture this – you spot an IPO that looks promising. You get in early and snag those shares at a sweet, low price.

      Then, as the company grows, your investment blossoms into a lucrative money tree.

      Uncertain Future

      Not every IPO is a success story. Some might go belly up or struggle to meet expectations.

      Investing in IPOs, therefore, is very risky – you win some, you lose some.

      Diversification Opportunity

      IPOs can be your ticket to diversifying your investment portfolio.

      By investing in a mix of IPOs from different industries, you spread your risk and increase your chances of hitting the jackpot.

      Market Sentiments

      When the market takes a nosedive, IPOs can be hit harder than established stocks. So, keep an eye on the market mood swings

      Best IPO Stocks to Buy Heading Into 2023

      1. Discord

        Discord is a name that most people are familiar with.

        What had started as a sophisticated and streamlined communication platform for gamers, has taken on some of the most giant tech companies such as Zoom (Nasdaq: ZM), Skype, and even WhatsApp.

        With its high-quality user interface and low-latency chat features, no chat apps seem to compare with Discord, which has gathered an almost cult-like following.

        Many market analysts have been predicting that an IPO for Discord may be imminent, which could rush bulls into action.

        This comes after reports of the company approaching several investment bankers for a direct listing or IPO to invest in.

        In the funding round in December 2020, the company’s value was an impressive $7.3 billion.

        In just 10 months, the company had essentially doubled its valuation and topped $15 billion in 2021.

        This had just come a few months after turning down a $12 billion acquisition offer by Microsoft (NASDAQ: MSFT).

        Similar reports emerged of turned-down offers by both Amazon (NASDAQ: AMZN) and Twitter (NYSE: TWTR).

        The interest in Discord by some of the largest names in the market comes as no surprise.

        The company has achieved sky-rocketing growth since its founding in 2015. Its userbase had jumped from 9 million in 2017, to a staggering 150 million at present.

        Moreover, although Discord does not publicize its financial results, many have approximated its revenue to have soared by almost 200% in 2020.

        We can, however, tell that the company has been doing extremely well judging by the acquisitions it had undertaken since 2018.

        These include The Blitz App in 2018, which allows users to earn money by playing online games, as well as emerging augmented reality star, Ubiquity6.

        The most recent acquisition was Sentropy Technologies, which employs AI tools to identify harmful content such as abuse.

        Discord holds all the signs of a company drifting towards an IPO this year or in the next.

        This is further confirmed by its hiring of its new CFO Tomasz Marcinkowski, who successfully led the Pinterest IPO in 2019.

        Similarly, the company has added some of the most seasoned corporate executives to its leadership board.

        These include former executives from Netflix, Microsoft, and Block. This is a move typically undertaken before a company goes public.

        Discord is a name that the market closely watches. An IPO of a company with such interest could be a record-breaker.

        Things are expected to move rapidly as soon as an official announcement is made. Market participants expect an IPO to happen before 2023.

      2. Stripe

        The renowned fintech star, Stripe promises to bring perhaps the best IPO to invest in for this year.

        The company has gathered almost legend-like status amongst market participants, owing to its extremely attractive metrics.

        Stripe stands as the most valuable private startup in the United States, leaving behind Elon Musk’s SpaceX, and InstaCart.

        In April 2020, the company’s valuation was determined at $36 billion.

        In a mere two-year period, this had shot up by an incredible 160%, placing the company’s worth at $95 billion.

        The services it offers have filled in a substantial gap in the digital market given its widescale acceptance.

        This is ascertained in almost 50 countries where its services are operational.

        Moreover, its list of clients includes some of the corporate world giants such as Google, Amazon, Microsoft, and Uber.

        The Stripe IPO is expected to be unlike any other, given the sheer scale at which the company is operating.

        Stripe’s services are used by millions of businesses, both startups and Fortune 500, across the globe.

        The total volume of transactions processed is in the hundreds of billions of dollars.

        With its ability to cater to 135 different currencies, it comes as no surprise as to why this startup is achieving such soaring heights.

        For such a star player, every bull in the market would rush for a piece of its cake.

        The story doesn’t end there for Stripe. Its most impressive factor remains its upside potential.

        The company’s expansion has been nothing short of mind-blowing. Its sights have recently turned to the potential of the European digital markets.

        Stripe has heavily invested in enhancing fintech, retail, and SaaS-related services for its European users.

        Moreover, it had launched operations in Britain, Germany, France, and the Netherlands.

        Similarly, it had recently undertaken expansive initiatives to penetrate the oil-rich and dynamic markets of the Arab Gulf countries.

        The company also has been very vocal about its ambitions to incorporate cryptocurrency processing into its platform within the near future.

        An IPO could inject a substantial volume of finances into Stripe that would take it into a different ballpark entirely.

        The startup has been heavily involved in working toward reinforcing its enterprise leadership across the markets.

        Through the enhancement and addition of further enterprise capabilities, Stripe would be heavily improving upon its competitive position and financial sustainability.

        Moreover, there remains immense growth potential for Stripe’s treasury network of global payments. This is especially true for the emerging BRICS economies.

        Stripe is a star player in the world of fintech, poised to trigger disruption of the traditional financial world.

        The IPO would likely be a game-changer for a startup with so many pros, which makes it a worthy enough IPO to invest in.

      3. Impossible Foods

        For anyone looking to approach the best IPO to invest in, it would be critical to take into consideration the direction of the broader market.

        One area that has been seeing growing prominence is agri-food tech startups.

        Companies operating within this domain have been looking to revolutionize the food industry in an innovative, yet sustainable manner.

        The market also has immense upside potential.

        The Swiss investment bank, UBS remarked that sales in the plant-based meat market will grow to $85 billion by 2030.

        To put this figure into context, the entire market reported sales worth a mere $4.6 billion in 2018.

        Impossible Foods is one such startup that is at the forefront of this change.

        Stories of its growth and success have stormed through the wider discourse, ever since its impressive debut in 2019.

        Through the use of the biomolecule, heme, Impossible Foods replicates the taste, texture, and nutritional value of actual meat, in a plant-based meal.

        Impossible Foods’ market and financial performance in recent years clearly reflects its success story.

        Currently, the company sells its products at over 20,000 grocery stores and up to 40,000 restaurants.

        It also offers exclusive products through its partnerships with both Burger King and Starbucks.

        Similarly, in 2018, the company achieved an impressive 85% annual revenue growth.

        This highlights the rapid rate at which its novel products are seeing acceptance by the wider market.

        In regards to its IPO, Impossible Foods’ CEO Pat Brown had shared his company’s motivations for the move, in a recent interview.

        He mentioned, “there are millions of non-billionaires out there who are very, very supportive of our mission but they don’t have a chance to share in our success.

        They would love to support the future of their planet and their kids and grandkids’ future, but they can’t invest in Impossible Foods.

        I don’t like that.” Based on this statement it seems highly likely that the company is fast-tracking its path to an IPO to invest in.

        This is definitely one that investors will be keeping an eye out for.

      4. Databricks

        Let’s now move on to Databricks, the rising star in the tech world!

        This cloud data platform is giving Snowflake a run for its money and is making investors sit up and take notice.

        Recently, Databricks raised a jaw-dropping $1B in funding from tech giants like Amazon, Alphabet, Salesforce, and Microsoft.

        With its valuation soaring to $28B, it’s clear that this company is onto something big.

        Investors are keeping a close eye on Databricks, especially with the potential for an IPO in 2023.

        As they say, the next tech star might just be Databricks, and it’s definitely an IPO to watch out for. It might just be the best IPO to invest in.

      5. Reddit

        We move on to yet another juicy IPO prospect on the horizon – Reddit! You know that online message board where all the internet action goes down?

        Yep, that Reddit. They’ve filed confidentially to go public, and it’s got potential written all over it.

        Sure, they haven’t spilled all the beans yet, keeping some details hidden.

        But with millions of new users flocking to Reddit during the meme trading madness, it’s clear they’re riding a wave of attention.

        Plus, they raked in a whopping $100M in advertising revenue during Q2 of 2021, up 192% from the previous year!

        With over 900 companies going public last year, Reddit’s IPO is poised to wrap up the banner year with a bang.

        CEO Steve Huffman is crossing his fingers for lots of retail investors to jump in. So, keep your eyes peeled about this, as it’s going to be a wild ride.

      6. Instacart

        Let’s now talk about Instacart’s potential as an IPO stock.

        The food delivery giant had its fair share of challenges in 2022, but here’s the scoop:

        Instacart’s been growing like crazy, raking in $1.8 billion in 2021, and it’s already profitable.

        Plus, they’ve got almost 14 million active users, as of 2023.

        The cool thing is, Instacart isn’t just about groceries anymore.

        They’re diving into cutting-edge tech and acquiring AI startups, opening up doors to partnerships with other retailers.

        Sure, there’s some caution to consider—other pandemic darlings didn’t fare so well post-pandemic.

        But with the digital grocery trend staying strong, Instacart could still be a contender.

      7. Chime

        Now, here’s one IPO to keep an eye on Chime, the digital bank making waves.

        Sure, they had to push back their IPO plans to focus on rolling out new products, like lending and investing features.

        But don’t be quick to dismiss them! Chime’s got a massive customer base, offering no-fee checking accounts and catering to lower- and middle-income Americans.

        Revenue’s been soaring, hitting nearly $1 billion in 2021, and they’re not alone in the game—competitors like Current are also growing fast.

        Yes, there have been some fraud issues in the fintech world, but Chime’s staying strong.

        Chime is definitely worth considering.

      8. Epic Games

        Alright, investors, let’s talk about why Epic Games could be among the best IPO stocks in 2022-2023.

        Fortnite, have you heard of it? This cultural phenomenon is a gamer’s paradise with over 350 million monthly players – bigger than a whole country!

        Players are hooked, spending real money on virtual goodies.

        In 2019 alone, Fortnite raked in a massive $1.8 billion. But that’s not all; it’s not just a game; it’s a lifestyle brand.

        Just look at Travis Scott’s $20 million virtual concert! Gaming is no longer just for fun; it’s a serious career, and Epic’s Unreal Engine is leading the way.

        Partnerships with giants like Microsoft Studios make Epic Games an irresistible investment. So, when that IPO hits, it could be epic.

      9. Fanatics

        Fanatics has got some serious potential as one of the best IPO stocks to watch.

        They’ve built a global empire, from selling sports apparel and headgear to owning divisions like collectibles and betting & gaming.

        With licenses from major sports leagues and big names backing them, they’ve gained a staggering $31 billion valuation.

        While an IPO isn’t in their immediate plans, the possibility is exciting.

        Going public could skyrocket their growth, fuel their new ventures, and take the company to new heights.

      10. VinFast

        Let’s move on to why VinFast’s IPO has the potential to be among the best IPO stocks to buy!

        VinFast, backed by Vingroup, is planning its first IPO on the Nasdaq, as an EV stock

        They’re smartly using a holding structure through Singapore, which allows them to bypass some regulatory barriers.

        Though there are challenges, like short-term losses and legal issues, the benefits are exciting.

        Going public means access to more capital, modern tech, and a higher share price.

        Plus, it boosts credibility with partners and opens doors for international investments.

        Nasdaq is a perfect fit for tech-oriented VinFast. With their innovative low-cost EVs, they could truly shine.

      11. Mobileye

        We now move on to one of the best IPO stocks to buy that’s got some serious potential: Mobileye.

        You know how electric vehicle (EV) stocks are all the rage, right?

        Well, Mobileye is Intel’s Israeli subsidiary, and they’ve been in the self-driving game for over two decades, way before it became cool.

        With their technology already in over 100 million cars worldwide, they’re no newbie to the scene.

        Their valuation took a hit recently, but that doesn’t change the fact that autonomous driving is the way of the future.

        Mobileye’s EyeQ chips are flying off the shelves, and their revenue is on the rise.

        Morningstar analysts are all about their scalability and real-time map development strategy.

        And let’s not forget about the ESG investing trend. Mobileye’s got a good shot at scoring high on those metrics, which could be a sweet bonus for investors.

        So, if you’re itching to ride the autonomous vehicle wave, Mobileye might just be the way to go. Time to buckle up and consider adding this one to your portfolio.

      12. Kraken

        Kraken’s potential as a top IPO stock lies in its strategic moves and experienced leadership.

        First off, they’re bringing in a bunch of seasoned executives who know their way around taking companies public.

        They’re thinking long-term, even amidst the rocky crypto and IPO markets.

        With folks like Dan Ciporin and Carrie Dolan, who were part of the successful LendingClub IPO, they’ve got some serious IPO street cred.

        Plus, the regulatory environment for crypto exchanges is looking up, and Kraken’s strong brand and loyal customer base give them an edge.

        This is not just your regular crypto exchange; they’ve got big plans in the financial services arena.

        So, keep an eye on Kraken, it’s got the potential to make waves.

      13. Klarna

        Up next, we talk about why Klarna might be one of the best IPO stocks to buy.

        Klarna is like this modern-day “buy now, pay later” option that has been gaining serious traction.

        They partner up with retail chains like Sephora and Ray-Ban, making it super easy for customers to split payments or pay in installments, all without those pesky interest fees.

        And guess what? Klarna’s raking in the dough! Their revenue shot up by 38% in 2021, and they boast nearly 150 million customers worldwide.

        Plus, they’re expanding their services to more markets and even rewarding timely payments. Smart move!

        Sure, there are some critics and concerns about the “buy now, pay later” model, but Klarna’s making waves, and the pandemic fueled their growth with online shopping.

        However, it’s worth noting the competition and potential challenges as things return to normal.

      When will the IPO Market Return to Normal?

      So, at this point, you must be wondering when the IPO market will return to normal after the roller coaster ride of 2022 and early 2023.

      Well, let’s take a look, so you can finally chase after the best IPO stocks.

      Global IPO activity pulled back sharply, and the start of 2023 has been unusually quiet. In Q1, we saw the lowest number of IPOs since the pandemic-hit Q2 of 2020.

      The US equity markets, dominated by tech, took a hit due to inflation concerns and rising interest rates.

      On the flip side, APAC showed strength, leading in both value and volume.

      So, while there’s some uncertainty, it’s worth keeping an eye on interest rates and how the market handles inflation.

      Stay tuned for the IPO show, as things are about to get exciting once again, and opening up opportunities to capture the best IPO stocks.

      How Recent IPOs Have Performed

      According to a number of credible resources such as the EY Global IPO Trends Report for 2023, there is some strong indication that while the global IPO market might be slow, emerging markets are shining bright.

      How Recent IPOs Have Performed

      There are opportunities to be found, so investors must be ready.

      In the first half of the year, the global IPO scene had its share of ups and downs.

      The number of IPOs dipped by 5%, and the total proceeds were down a whopping 36% compared to last year.

      But guess what? Emerging markets are defying the odds and booming! They’re cashing in on the demand for their resources, unicorns, and cool SMEs.

      Some of the very the best IPO stocks belong to this category.

      Tech companies are still rocking the IPO stage, but the energy sector hasn’t been feeling the love due to softer global energy prices.

      And get this – cross-border action is on the rise, thanks to China making its mark in the US and Swiss Stock Exchange.

      In the Americas, there’s some good news. IPO proceeds spiked 86%, all thanks to a mega spin-off IPO that blew everyone away – the largest in the US since 2021.

      The US is getting back in the game, and we might see more IPO action later this year or in 2024.

      Meanwhile, the Asia-Pacific region is still the IPO champ, claiming about 60% of all IPOs worldwide.

      But Mainland China’s market cooled down, which affected the total proceeds.

      How to Get Exposure to IPO Stocks

      Now let’s talk about how you can get your hands on some of the best IPO stocks! It’s pretty straightforward, so no need to stress.

      • Traditional Brokerage Accounts

        The classic way to go. Open an account with a reputable brokerage firm, and you’ll have access to the best IPO stocks when they hit the market.

      • Online Investment Platforms

        Check out those user-friendly online platforms. They often offer the best IPO stocks to their members, making it super convenient.

      • IPO Investment Funds

        Keep an eye out for mutual funds or ETFs that specifically focus on IPOs. They do the research for you, saving time and effort.

      • Investment Banks

        Some investment banks allow individual investors to participate in IPOs.

        Just give them a shout and see if you’re eligible, and you could gain exposure to some of the best IPO stocks.

      Trading vs Investing in IPO Shares

      There are two main paths to take when approaching the best IPO stocks.

      You can either trade in them or invest in them. It’s crucial to understand this distinction.

      Trading IPO shares is like betting on uncertainty. You buy and sell the shares quickly, aiming for short-term gains as the stock price fluctuates.

      It requires active monitoring and a stomach for risk.

      On the other hand, investing in IPO shares takes a more patient approach.

      You believe in the company’s long-term potential and are willing to hold onto the shares for years.

      This strategy is about riding the wave of growth and letting the company blossom into the best IPO stocks.

      Remember, trading can be thrilling, but it’s riskier. Investing offers a chance to grow with a promising company over time. The choice is ultimately yours, so make it wisely.


      Companies that take the IPO route are often those that are highly successful and have their sights set on exponentially greater milestones.

      In many cases, IPOs offer investors the opportunity to share in the success of a potential gamechanger.

      Although not all are successful to this end, given the high risk they hold, some are truly golden opportunities.

      The best IPO stocks, discussed in this article are such that their hype will send shockwaves across financial markets.

      This is due to the unique opportunity each presents in different, dynamic growth markets.


      Which Company Had The Largest IPO in History?

      The company that had the largest IPO in history is Saudi Aramco.

      It is a Saudi Arabian multinational petroleum and natural gas company, raising almost $30 billion through its IPO in 2019.

      What Were Some of the Largest IPOs in U.S. History?

      Some of the largest IPOs in U.S. history include Alibaba Group, Facebook, and Visa.

      What Were the Biggest Tech IPOs?

      The largest tech IPOs to have taken place were Alibaba and Meta, which respectively reeled in $21.8 billion and $16 billion.

      More From Stocks telegraph