In case one thought IPOs had become an obsolete source of cash for companies, think again. 2019 is shaping up to be a record-breaking year for IPOs. In fact, it is looking to surpass even the heyday of the dot-com boom. Kathleen Smith, principal at Renaissance Capital, says, “We think it is possible that 2019 could prove to be a record year for capital raised in the IPO market, at over $100 billion in issuance, exceeding the amounts raised in 1999 and 2000.” Below, take a look at some of the largest IPOs of all time and the issuing companies’ trajectory since going public.
Alibaba – $25 billion
In 2014, this Chinese tech company launched onto the U.S. IPO market, as Hong Kong’s stock exchange did not allow for dual-class offerings at the time. The past five years have been good ones for both the company and its shareholders. Shares have increased 190% since its initial offering, and the company’s current valuation is at $484 billion.
Visa – $19.7 billion
The ubiquitous credit card company raised a record-setting $19.7 billion upon going public in March 2008. Visa has continued to deliver for investors; shares have appreciated 1,363% from the initial asking price.
General Motors – $18.1 billion
Barely a year after the U.S. government bailed the company out of its Chapter 11 bankruptcy, General Motors came to market to raise $18 billion through IPO. The company has not been without issues in the years since; an ignition switch scandal and numerous recalls have plagued the company. That said, the stock has performed reasonably well, rising 18% since IPO.
Facebook – $16 billion
Facebook’s IPO was riddled with problems when it went to market in May 2012. Technical issues with Nasdaq caused delays and led to purchase price discrepancies. The tech giant closed out that first day with an IPO valued near $81.2 billion, and stock values barely above opening price. Rough start aside, the company has performed well over the years, and investors enjoy a stock up 408.6% from the initial offering price.
Uber – $9 billion
Uber’s highly anticipated IPO was priced on a company valuation in the neighborhood of $45 billion. The overarching question that persists is this: When will this number actually be justified through profits?