The IPO market is showing signs of revival in 2024 with several big names like Shein, Skims, Reddit, and Rubrik being discussed as potential listings. Shein, a Chinese-founded on-demand retailer, has confidentially filed for an IPO with US regulators and is seeking a valuation of $90 billion, which would make it the largest since Alibaba's IPO in 2014.
The diversity of companies eyeing IPOs, including social media platform Reddit and cloud data management firm Rubrik, indicates growing confidence across different sectors. However, the market is still recovering from a freeze in IPO activity in the past year, with investors being cautious and selective.
For Skims, co-founded by Kim Kardashian, its latest fundraising round brought its valuation to approximately $4 billion. The company's potential IPO is being closely watched due to its rapid growth and Kardashian's influence. However, Skims is exploring multiple options, and an IPO is not confirmed.
Shein's potential IPO is facing regulatory scrutiny due to its labor practices and ties to China. Lawmakers have raised concerns about the company's compliance with the Forced Labor Prevention Act, which could impact its public debut in the US.
The IPO market's rebound in 2024 is partly attributed to a more stable economic environment, with expectations of peak Fed funds rates and a more predictable path for interest rates. This stability could boost investor appetite for new, speculative listings.
Overall, the IPO market in 2024 looks promising, with a variety of companies considering going public. However, the success of these potential IPOs will depend on market conditions, investor sentiment, and regulatory approvals.