An Initial Public Offering (IPO) is when a company raises funds from the public by offering its shares for the first time on the stock market These stocks are first sold to institutional investors such as mutual funds, pension funds, insurance companies, and other large financial institutions, which in turn sell them to retail investors. Because these stocks usually have a higher-than-average rate of return, they often attract a lot of attention from the public and can create a buzz in the media.
The stock market is a great way for companies to raise capital, allowing them to expand their operations and increase profits. IPOs can also bring in a large amount of money in a relatively short period of time, giving the company important financial flexibility. However, there are risks associated with IPOs, so it is important for the company to conduct thorough research before deciding to go public.
Here are five of the most interesting examples of IPOs:
1. Uber: Uber’s highly anticipated IPO was one of the largest of 2019. The ride-sharing company raised over $8 billion in its IPO launch, which was the biggest IPO of the year.
2. Alibaba: Alibaba’s IPO was one of the most successful in recent history. The Chinese e-commerce giant raised a staggering $25 billion in its 2014 IPO launch, making it the largest ever at the time.
3. Snapchat: Snap Inc. raised $3.4 billion in its 2017 IPO, making it the biggest tech IPO since Facebook’s in 2012. The stock has since quadrupled in value since its debut on the stock market.
4. Nintendo: The Japanese gaming giant had a successful IPO in Tokyo in 1983, raising $747 million. Since then, the company’s stock has gained over 800% in value and is still a popular investment today.
5. Twitter: Twitter’s IPO was one of the most hyped and talked about of 2013. The social media company raised $1.8 billion in its initial public offering and has since seen its stock price grow more than four times its IPO price.