And while it’s quite difficult to say where we are in the pre-IPO process and when the shares will finally hit the stock market live, I think it’s more than worth keeping track of developments and perhaps putting the name on a watchlist on the big day, whenever that may be. Just last month, Cohere CEO Aidan Gomez noted that an IPO could happen “soon.” How soon is soon?
Expect to pay a high entrance fee
That’s the big question, but either way, once a date is announced, it may be worth marking the calendar, as I have a strong feeling that such an IPO could be one of the most underwritten in recent memory. But as always, one must understand that betting on IPOs involves many risks. Even a powerful AI company like Cohere may not be a bargain if the entry price doesn’t make much sense by the time you can buy a few shares for yourself, likely after others have already had a chance to do so.
Right now, Cohere could be worth around $7 billion, but if I had to hazard a guess, I’d say the valuation could soar to much higher levels if an IPO were to happen and take off, so to speak. Therefore, I think mainstream retail investors could see stocks going for a market cap well above the $10 billion market cap mark. And while higher than expected, the price of admission could very well be worth it if you believe in the company’s AI strategy.
Cohere’s IPO will be a must-watch
With a recent $500 million capital raise and plenty of excitement about the next phase of AI, nibbling and building a position after an IPO might be the way to go. In the meantime, don’t wait for an IPO. Shopify (TSX:SHOP) is just one AI winner live today. And it’s worth taking a look in November. It’s undoubtedly on its way to becoming an AI-first company (if it isn’t already following recent innovations), as it prepares for industry changes at the hands of agents and all kinds.
Personally, I’m a big fan of the AI company and think its intriguing range of AI models could unlock a world of growth potential in this AI revolution. It’s not just the consumer side of the equation, but also the corporate side that could truly make a Cohere IPO a public market debut for the ages.
In the meantime, I’d take the next few months to take a closer look at the company’s AI products. While there are other AI beneficiaries in Canada to bet on today, Cohere is one of those AI pure plays that could be even bigger. And given the excitement around such pure plays at this stage of the AI boom, I think the name could be a major long-term winner if it transitions to profitability.
Can you imagine a generative AI pure-play with a “path to profitability?” I don’t know about you, but I’m sensing a name that could quickly rise through the market caps if and when an IPO ever happens, perhaps in early 2026. Either way, Cohere’s IPO could be one of the most exciting Canadian public market debuts in decades.
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