An opportunity that is typically overlooked in the investment spaces is that of recently listed new IPOs stocks, that just had their IPOs take place during the year. The reason these are overlooked is that they have not had enough time to elapse to establish a presence or a publicized financial track record, giving investors an idea of where it stands, or where it is headed. However, for keen-eyed investors, this is an area of immense promise, especially when picking a stock that is just on the verge of its upward climb.
A cash injection to companies, in the form of a public offering, sets them on a different stage entirely and boosts their growth prospects. For this reason, such an investment category could prove to be a game-changer for many, especially if properly executed. In light of this, we bring forward a list of IPO to invest in, each of which has had its IPOs take place during the year.
Mobilicom
One of the most keenly followed new IPOs stocks of recent months was Mobilicom (NASDAQ: MOB). Mobilicom is an Australian cybersecurity company that specializes in smart solutions for drones as well as robotics. The company, despite its promising and innovative technology, had historically been recording losses before its public offering. However, this was due to its limited finances due to which it had only been serving a mere fraction of its total addressable market. With the IPO, the company saw a cash injection of over $13 million, thus significantly boosting its forward-looking prospects.
Given the strong promise of Mobilicom’s innovative technology, the stock has been seeing some impressive performance now that it is circulating in the secondary markets. Just a few days after its IPO, MOB surged by 33%, following a rally by investors. A large part of this rally is driven by its business’s growth potential. Mobilicom taps into a giant growth runway, considering that it is only presently catering to a fraction of the market. With the funding boost, its marketing and production both are ready to see a strategic optimization. This dramatically increases its possibilities. Furthermore, its competitive edge, through its unique technology further lays clear its path toward rapid expansion.
Virgin Orbit Holdings
The second IPO potential success story is that of Virgin Orbit Holdings (NASDAQ: VORB). VORB is an aerospace company, based in Long Beach, California, and one that has a truly global presence. Ever since its IPO on NASDAQ, earlier this year, the company has soared to new heights in terms of its business. Given its strengths in orbital air pad launch solutions, and its expertise in satellite deployment, the stock has been a favorite amongst bulls, this year.
In July, VORB saw a successful launch of its Straight Up mission involving seven satellites carried to low earth orbit. The launch was essentially carried out for the US Space Force, a major client of the company. The Space Force procured the launch to transport payloads from the Department of Defense Space Test Program. For a company that has only completed its IPO in 2022, such significant milestones, as well as credible names point to it being a potential giant in the space field within the coming years. Since its IPO funding, VORB has undertaken some critical structural changes which further enhance its forward-looking position. For one, the company has widened its customer network by including some of the biggest space players within its scope, which includes both government and private parties. Additionally, VORB has also been focusing on growing its backlog, as well as driving gains in operational efficiency.
These fundamental shifts make this new IPO stock a crucial player, which is likely to skyrocket in the future.
TPG Inc.
The third stock we look at is the recently listed emerging star of the finance world, TPG Inc., (NASDAQ: TPG). TPG is essentially a global alternative asset manager. It boasts a robust history of increasing earnings, revenue, and assets under management. At least 77% of the company is owned by insiders, which is reassuring, considering that it is the own money of insider figures that are being put at stake. TPG’s Private equity sector is one that is capital oriented and presently stands at $57 billion, making it the largest investment segment. Similarly, TPG seeks to ensure fast growth by targeting rapidly growing businesses, to which it has presently allocated $22 billion.
In total, TPG has diversified its investments across five multi-product platforms. In addition to capital and growth, these include impact, real estate, and market solutions. TPG has been in the trade since January, and since then has fallen from $34 to $30. This is impressive considering the bearish market conditions, and the struggle new stocks face in such circumstances. In fact, since mid-June, the stock has seen a growth of 24%, whereas the S&P 500 climbed by a mere 8%. The business is clearly one that is in demand by the wider market, making it a great opportunity to consider for investors.
Excelerate Energy Inc.
Number four on this list of new IPOs stocks is Excelerate Energy Inc., (NYSE: EE) a company that provides flexible LNG solutions worldwide. Given the nature of the industry Excelerate operates within, things have been tough for the company since its IPO. Supply chain disruption, sanctions on Russia, and record levels of inflation have each slowed down the pace of this new company. The inevitable result of this was a net loss in its first quarterly results following its IPO in April. However, this should not dissuade investors from the broader value EE holds, especially in light of upcoming catalysts that will unlock serious value for its stock.
For one, in light of the challenges, Excelerate is focusing on going downstream in its Brazilian segment and selling LNG to customers. This would allow it to capture a larger percentage of the economics along the value chain. Further, it also has a major LNG terminal planned for launch in Albania, as well as a time charter and regasification agreement with the government of Finland in the near term. These catalysts could tremendously boost EE stocks price. Considering additional tailwinds such as growth in its Vietnam market, the stock could potentially be trading at a significant discount. This one could very well become a favorite amongst value stock chasers.
Belite Bio Inc.
The final stock on this list of new IPOs stocks is that of the clinical-stage biopharmaceutical company, Belite Bio Inc. (NASDAQ: BLTE). Belite Bio offers one of the most successful IPO stories on this list. After initiation in April, the stock had a price of barely $10. Hardly four months later, BLTE has more than tripled its price, to a present figure of $36 a share. Just in the last week, the stock undertook an over 15% climb, following news of its lead candidate LBS-008 entering phase 3 clinical trials.
The candidate addresses the eye disorder, Stargardt Disease. The condition is the most common retinal dystrophy by inheritance that results in either a loss or blurring of vision. The news of such a critical timeline milestone achievement so close to its IPO is beyond impressive. The company holds $48.7 million in cash, as per its recent balance sheet, giving it enough leeway to burn through for the development of its drug until commercialization. The news significantly boosts the company’s probability of success, given the risk biopharmaceuticals typically hold. It also enhances the chances of the company delivering similar successful candidates on their path toward commercialization.
Conclusion
2022 had been a rough year for IPOs, given the severity of the macroeconomic headwinds that brought down even the most robust of stocks, this year. Despite this, however, a number of new IPOs stocks, that just initiated trade this year are proving to be potential big winners. At a time when people are looking at these early players with skepticism, there lies a great opportunity to beat the market tremendously. The stocks in this list each are optimal for leading to this positive outcome.
