Author: Julia Khandoshko

The buzz around Telegram’s potential initial public offering (IPO) has intensified since the company rolled out $1.7 billion in eurobonds. Investors are abuzz with curiosity: how close is Telegram to going public, and why is this opportunity generating such excitement?

Bonds with Benefits: A Gateway to IPO Shares

Telegram’s latest eurobond issuance isn’t just about raising capital-it’s a strategic move that’s turning heads. With a robust annual yield of around 9%, these bonds outshine many offerings from tech peers. What sets them apart, however, is a standout perk: bondholders are promised priority access to IPO shares at a hefty discount. In a world where snagging IPO allocations is a challenge even for big players, this feature is a game-changer. Demand for the bonds soared, outstripping supply by a factor of five, a clear sign that investors see this as some sort of prelude to Telegram’s public debut.

Market Winds Shifting in Telegram’s Favor

The timing of this bond release aligns with a changing financial landscape. High interest rates have long dampened IPO activity, pushing companies and investors toward safer bets. But with rates expected to ease soon, the stage is set for tech firms to seize the moment. Telegram is also tidying up its image. Once criticized for lax oversight of content, the company now touts tools to tackle piracy and illicit material, alongside stricter ad policies. These steps aren’t just compliance checkboxes-they’re signals of a business gearing up for the scrutiny of public markets.

Profitability Takes Root: Telegram’s Money-Making Machine

Gone are the days when Telegram was dismissed as a founder-funded money pit. Last year, it posted a profit exceeding $500 million, with revenue tripling to top $1 billion. The Telegram Premium subscription has been a standout, ballooning to 15 million users and ranking among the fastest-growing paid services in social media. Advertising is another bright spot: Telegram Ads raked in $245 million in 2024, driven by 55 new ad formats and a 490% spike in advertisers since early 2023.

The company isn’t stopping there. Its new in-app currency, Telegram Stars, lets users buy services or send gifts, adding $31 million to the coffers in Q1 2025 all alone. Also, expenses are shrinking-Telegram’s cost index is already among the leanest in the sector and dropped further in 2024 thanks to savvy cost-cutting. This blend of rising revenue and tight fiscal discipline may really make Telegram a tantalizing IPO prospect.

A Worldwide Reach with a U.S. Edge

Telegram’s global popularity is no secret, but its dominance in the U.S. market stands out. Data shared with investors reveals the United States as the top source of app downloads-a surprising twist given the company’s origins. This foothold in a wealthy market primes Telegram for lucrative monetization plays. And while its Russian roots once raised eyebrows among Western investors, that stigma is fading. In an era where performance trumps geopolitics, Telegram’s numbers are doing the talking.

A note about Pavel Durov, founder of Telegram and potential risks he might bring to the company. Readers may be aware of the friction between him and the French government. However, I noticed that after all the fuss surrounding his arrest and subsequent release, the company did not experience any major upheavals, and I see it as a good sign.

The question isn’t whether Telegram will go public- it’s more like when. A 2026 IPO feels within reach, but market turbulence could push it back. Rather than rush into a cut-rate listing, Telegram might bide its time for the perfect window. Still, the bond issuance and financial glow-up leave little doubt: the company is laying the groundwork. When it finally hits the market, Telegram’s IPO will spotlight a truth-tech breakthroughs aren’t just a Silicon Valley story anymore.

The featured image is AI-generated.

Investing in a company before it hits the public markets offers a chance to capture growth early, but it comes with distinct risks and rewards. Many view the IPO as the prime moment to buy shares, yet much of a company’s value often builds long before. Nasdaq data reveals that firms now spend over a decade in private status, often reaching a $1 billion valuation before going public. This is the domain of pre-IPO investing-a window to tap into rising stars before they shine on the open market.

What Defines Pre-IPO Investing?

Pre-IPO investing involves backing private companies that have outgrown their startup phase but aren’t yet listed on exchanges. Unlike IPO shares, which trade freely, pre-IPO stakes are typically illiquid, held until the company goes public or sold in secondary markets. Straddling venture capital and public equities, this stage lets investors buy into businesses showing real momentum at valuations lower than public offerings.

Why It Draws Attention

Pre-IPO opportunities allow investors to secure larger share allocations than in oversubscribed IPOs, where demand often outstrips supply. Early entry can yield significant gains-some companies see their market value surge by 350% within a year of going public. However, the trade-off is clear: private firms offer less transparency, with less rigorous reporting and performance that may vary. For those comfortable with uncertainty, pre-IPO investing provides a shot at outsized returns.

Risk Management

Success in pre-IPO investing hinges on avoiding common pitfalls. Timing and pricing are critical-market volatility or sector slumps can skew valuations unfavorably. Investors need a clear picture of the company’s direction: is it a high-growth innovator or a steady cash-flow player? Without a defined roadmap, confidence wanes. Transparency is equally vital; even without public oversight, solid metrics are non-negotiable. We should request detailed cap tables, term sheets, and liquidation preferences to gauge risks like dilution or exit priorities. Finally, companies that treat pre-IPO as a mere funding round rather than a partnership often falter. Open communication builds trust.

The Bottom Line

Pre-IPO investing is more than a high-stakes bet- it’s a vital part of today’s financial landscape. For those skilled at assessing timing, valuation, and execution, it unlocks value before the broader market catches on. In a world where foresight trumps late moves, disciplined pre-IPO investors can shape tomorrow’s success stories.