While the initial public offering market has slowed down since the end of February, this year's hottest listings still lay ahead, with cryptocurrency exchange Coinbase Global, Inc. filing to go public through a direct listing that could value the company at more than $5.4 billion.
Coinbase is a San Francisco-based company that offers a digital currency exchange that has amassed over 43 million users worldwide and has facilitated more than $456 billion in transactions to date, according to the company's latest U.S. Securities and Exchange Commission filing.
Coinbase is profitable, with the company generating a net income of $322.3 million from the roughly $1.3 billion in revenue for 2020, according to its filing, which was double the $534 million revenues totaled in 2019.
Since Coinbase's business model is focused on bringing cryptocurrency-based financial services to global smartphone users, the company is set to benefit from the increased interest and demand in cryptocurrencies like bitcoin or ethereum.
The company plans to trade under the ticker 'COIN' on the Nasdaq, but has no official listing date scheduled at this time.
IPO Market Update
Last week, while no traditional offerings priced, a whopping 29 special purpose acquisition companies (SPAC) went public, raising $10.7 billion. The SPAC wave was led by Soaring Eagle Acquisition Corp.
SPACs have been super popular in 2021, with SPACs averaging over 3 deals per trading session, according to Renaissance Capital. At that rate, the market can expect over 1,000 blank check offerings by the end of the year.
For this week, the market is staying pretty quiet at the moment, with only two health care sector listings scheduled to debut.
In the biggest deal of the week, Oscar Health, Inc.
InnovAge Holding Corp.
24 SPACs are slated to debut this week, with the group expected to raise over $7.3 billion.
