The Ripple Swell conference in Dubai concluded without the much-anticipated announcement of an Initial Public Offering (IPO) by Ripple, leading to a surge in speculation about the fintech company’s future plans. Crypto influencer Eri weighed in on the discussion, urging caution and a nuanced approach.
Ripple IPO Not So Soon?
Eri emphasized the importance of contextual analysis, stating, “When you hear people discuss Ripple IPO, comparisons should be made with similar types of companies.” She used the example of Ripple Partner Nium Global, which has postponed its U.S. IPO to possibly the second quarter of 2025. She highlighted Nium Global’s recent launch of a liquidity hub, Global FX, which offers a solution to lock and hold an FX rate for up to 24 hours.
In her analysis, Eri also referred to Ripple partner Tranglo and its parent company, Seamless Group, pointing out their delayed public listing with INFINT Acquisition Corp. This delay resulted in a significant loss of cash in the trust, which Eri remarked on, “The delay resulted in a 23% loss of cash in the trust, which was announced in August 2023.”
She further compared Ripple’s situation with Nubank, a Warren Buffett-backed fintech bank. Despite Nubank’s size and revenue, its share price has dropped 23% from its all-time high since its IPO. Eri used this to underscore the current market sentiment, “No wonder investors aren’t excited about IPOs. The biggest IPOs of 2021 have shed 60% of their value. There remains a considerable backlog of still-private unicorns contemplating a market debut should conditions improve.”
Eri concluded her comments by outlining the essential components for a company’s valuation and share price analysis: “When you hear somebody give their price analysis, for a company valuation, to get close to a possible share price, be sure they include Cash Balance, Debt, Value of Investment Portfolio, Total Shares Outstanding (fully diluted), and Value of Any On-Hand Assets.”
Another Roadblock For An IPO?
Adding to these insights, Yassin Mobarak, founder of Dizer Capital, recently raised concerns regarding Ripple’s IPO prospects in light of the ongoing SEC dispute. As Bitcoinist reported, Mobarak referred to a conversation with CEO Brad Garlinghouse, who indicated that an IPO is unlikely while the company is entangled in litigation with the SEC. Garlinghouse did mention the possibility of considering an IPO outside the United States but did not provide a definitive timeline.
The combination of expert opinions and market circumstances highlights the complexity surrounding Ripple’s IPO prospects. It suggests that any immediate expectations for a IPO might be premature, with several factors needing careful consideration.
At press time, XRP traded at $0.6623.
Featured image from Shutterstock, chart from TradingView.com