Initial public offering (IPO) is the stock issuance process onto the public market. There are a few different methods by which a company will first become listed on a stock exchange. The most common way would be underwriters, which are typically financial organizations that supply a company with capital, and along with that comes risk with eventual plans to list the company on a stock exchange. For their help listing a new company, they, of course, require a fee. Another method is by direct listing, which bypasses underwriters and is where the company supplies the capital and risk regarding the listing. All of these companies are striving to be deemed up-and-coming IPOs.
An advantage of investing in a company that has recently had its IPO date is the ability for investors to buy up shares in a company at a reasonably cheap rate before others figure out what the company is worth and cause the company to not be such a bargain anymore with way more investors interested. But, of course, there can always be a downside to investing in a new company. You are driving blind. Investors need to know how a new company may handle adversity going forward. And trying to determine if the stock is a boom or bust is a tricky process.
Nextracker (NXT)
Nextracker (NASDAQ:NXT), located in Fremont, California, is a solar tracker and software company that provides solutions for late-scale solar projects. Their various products include NZ Horizon and NX Gemini, both leading solar trackers used globally. They also offer solar infrastructure software such as TrueCapture and NX Navigator.
Since the company started trading publicly in February, its share price has increased by 31%. Nextracker’s most recent earnings were released on July 26. It states revenue growth year-over-year of 19% and earnings per share of $0.43. For their fiscal outlook for 2024, Nextracker anticipates total revenue for the year to be somewhere between $2.2 billion and $2.4 billion.
Nextracker announced alongside Asteelflash/USI, an electronic component producer, that they are opening a manufacturing line for Nextracker to produce their patented solar technology.
Acelyrin (SLRN)
Acelyrin (NASDAQ:SLRN) is a biotech company in Agoura Hills, California. It focuses on developing and distributing medicines to treat various skin conditions, inflammation disorders and thyroid eye disease.
On May 4 of this year, the company announced its IPO and the pricing of 30 million shares at $18 per share. Since its IPO, their share price has grown by 9%. Acelyrin recently announced that they appointed Ken Lock as Chief Commercial Officer will be among their senior leadership team. On August 14, the company announced its earnings report for the second quarter of 2023. The company reported a net loss that expanded by 79%, and their total operating expenses more than doubled compared to the results for the year prior.
There were some new developments for Acelyrin during the second quarter, including positive news regarding the beginning phase trials of Izokibep, which treats Hidradenitis Suppurativa, an inflammatory skin condition, enrollment for their Phase 2b/3 trial regarding Izokibep for the treatment of Psoriatic Arthritis another skin condition.
Recently, in June, the company saw a spike in their share price of approximately 35% due to a close competitor of Acelyrin, Moonlake Immunotherapeutics (NASDAQ:MLTX), which saw positive Phase 2 results in a drug to treat Hidradenitis Suppurativa. This is very similar to Acelyrin’s drug Izokibep. It overall grew overall market interest with this new treatment.
Skyward Specialty Insurance Group (SKWD)
Skyward Specialty Insurance Group (NASDAQ:SKWD), headquartered in Houston, Texas, is an insurance holding company focusing on property and casualty insurance products. They offer specialized insurance options among underwriting divisions, including accident & health, transactional E&S, program surety, global property and agriculture and medical stop loss.
Skyward Specialty Insurance Group announced its IPO date in January of this year. Since then, the company has seen share price growth of over 25%. Within their most recent earnings report, which was released on August 8, they stated total revenue increased by 45% and net income nearly quadrupled year-over-year. They also saw a significant increase in gross premiums written within the same time period of 29%. This and the other stocks we mentioned are all worthy up-and-coming IPOs that you should consider.
As of this writing, Noah Bolton did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.