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.
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