The IPO (initial public offer) space is getting back on its feet this year, after having clocked listings of 173 companies on public exchanges in just under 9 months. The number trumps those recorded last year, 160 companies, and in 2016, 105 IPOs.
In the second-quarter of 2018, over 60 companies went public which was the highest number in over 3 years. Companies raked in excess of $45.7B in the first 9 months of 2018, significantly up from $31.1B in the same period last year.
Here, we look at 5 of the highly anticipated IPO’s in 2019.
Uber is pitched as one of the most popular car aggregator globally. While its current valuation is around $72B, the company might be valued at $120B when it goes public in 2019.
Goldman Sachs [GS] and Morgan Stanley [MS] are leading investment banks that might take the company public. It will be interesting to see if investors line up for a company that has posted losses in every quarter since inception.
Total Funding: $23.85B
The Uber for vacation rentals and long-term accommodations, Airbnb is another unicorn that is eyeing an IPO next year. Airbnb has raised approximately $4.4B to date and is one of the most valued start-ups in the world.
Airbnb has been profitable on an EBITDA (earnings before interest, tax, depreciation and amortization) basis for a while now and is not burning money compared to other tech start-ups.
The company is eyeing an IPO and has set a goal of June 30, 2019, to be “IPO Ready”. Airbnb might generate sales between $3.5B and $4B in 2018.
Total Funding: $4.4B
Deliveroo is a UK-based company and is one of the country’s hottest and most valuable startups. Started by a former investment banker, the company is an end-to-end food delivery service that connects local restaurants with customers.
There have been talks about Uber acquiring Deliveroo to integrate the same with the Uber Eats vertical. Deliveroo is another company that might go public in 2019.
Total Funding: $1B
DJI is the largest drone manufacturer globally. It is dedicated to make aerial photography, filmmaking more accessible. DJI’s products are available in over 100 countries.
Earlier this year, DJI was planning to raise between $500M and $800M ahead of its stock market debut.
Total Funding: $105M
Lyft is Uber’s direct competitor and is locked in an IPO race. Earlier this year, Lyft raised $600M at a $15.1B valuation. JP Morgan [JPM] is in talks with Lyft to take the latter public as an underwriter.
Total Funding: $4.9B
CHART: How Blockchain Powers Bitcoin
Blockchain, Bitcoin. Bitcoin, blockchain.
The two terms go hand in hand—and have become almost ubiquitous with this year’s insane rise (and fall) of Bitcoin.
But what does it all really mean? How does it come together? In this week’s chart, our friends at CB Insights break down exactly how blockchain powers Bitcoin.
This Mogul Became America’s 1st Black Billion-Dollar Businesswoman
Where to start?
She’s the first black billion-dollar businesswoman. Before Oprah Winfrey.
She started as a TV executive, founding Black Entertainment Television (BET), the first TV network targeting African Americans. She then became a real estate mogul.
Oh, she also owns a stake in three major sports franchises, the NBA Wizards, NHL Capitals and the WNBA Mystics, the African American, period, to boast that claim.
In honor of Black History Month, let’s dive into her remarkable career.
- Born Sheila Crump in McKeesport, Pennsylvania, Johnson co-founded BET in 1979 with then-husband Robert Johnson. The couple sold it to Viacom in 2000 for $2.9B
- Sheila Crump Johnson became the first African American woman on the Forbes’ Billionaire list in 2000—beating Oprah Winfrey to the distinction.
- Per Forbes, Johnson has an $820M net worth as of 2019
Foray into real estate…
After closing the sale to Viacom, Robert and Sheila pocketed around $1.5B each. Johnson used that windfall as seed money to build a hospitality real estate empire in 2005.
“There’s a disparity in paychecks between whites and blacks,” she told the Wall Street Journal. “I will never forget that.”
As CEO of Salamander Hotels and Resorts, Sheila controls a spectacular portfolio of six luxury hotels in Florida, Virginia and South Carolina. And she’s built it from the ground up—literally—in her own spirit.
“I’ve been to many hotels, not only in the US, but all over the world,” she told Forbes last year. “And I wanted to find something that was going to really make Salamander stand out beyond all of these hotels.”
So what does that mean?
“You have to understand, there are a lot of people, investment companies, with very deep pockets,” she says. “They can do it, but they don’t have the experiences that we’re able to bring. I am constantly trying to find a way to help Salamander Resort & Spa stand out head over heels above any other hotel — not only in the area, but in the nation.
“I want them to leave that resort wanting to come back and not just say, ‘I’ll be back in six months.’ I want them to come back all the time.”
And so far it’s worked. In fact, on Forbes Travel Guide’s 61st list of Star-Rated hotels, Johnson’s Salamander Resort & Spa outside of Washington, DC earned a Five-Star distinction.
Forbes: “Everything [she] touches turns to gold.”
That’s a real quote. From Forbes. Last year. It’s also true.
BET? Billion-dollar exit. Washington Capitals? Stanley Cup.
And Roma. Won 10 Oscars. Who showed it before a single soul started caring? Johnson’s Middleburg Film Festival. (Which, by the way, has 32 films and counting in Academy Award contention.)
Remember her golf resort at Innisbrook? Oh, yeah. Hosts the Valspar Championship, one of the PGA calendar’s most-anticipated tournaments.
Becoming a billionaire comes with a new level of clout as well. “When you don’t have money, you’re not invited to special events; you really don’t matter,” she told WSJ. “It’s a society thing.”
So instead, she’s turned to giving back. Her Sheila Johnson Fellowship’s paid for more then 40 scholarships at Harvard University for students who otherwise wouldn’t afford to attend.
Breaking glass ceilings.
There’s an alarming statistic in business and diversity—especially as it pertains to women. According to research by investor Richard Kerby, 18% of all VCs are women—and only 3% are black. In addition, less than 50 black women ever have raised $1M in funding.
“When I got started,” Johnson says, “I couldn’t get a loan. I had to use my own money to get Salamander Resort and Spa.”
She explained to WSJ last year that men can go to any bank with a bank proposal. And no matter how “wacky” the idea is, she said, “they’re going to get the financing. Women do not have that ability.”
Johnson’s taken it upon herself to do something about that, becoming one of the founding partners of WE Capital, an investment firm that invests in female entrepreneurs.
“I started out in a very unique position where I had my own capital to be able to get started,” she says. “But there have got to be banks and investors that believe in helping women who want to be entrepreneurs in the hospitality business.
“And it’s just really, really important that they really take a look at this.”
VIDEO: How Far Does $150K A Year Get You In New York City?
No matter what metric or list you look at, it goes without saying: New York City is one of the most expensive places in the world to live in.
In this video, CNBC spoke to a Millennial who runs her own brand consulting agency and wants to #WealthHACK her way to retirement by 40.
She makes $150K a year. But how far does that actually get her? Check it out.