If a private company needs investment, it can list its shares on the stock exchange, inviting anyone to buy them. In other words - go to IPO
An IPO signals that a firm has reached a new level of development.
An IPO (initial public offering) - the first public sale of shares - can be a sudden infusion of tens of billions of cash for a company in a matter of hours. As a rule, an IPO has a good effect on the image: it gives a sign to potential investors and partners that the company has reached a new level of development.
Another way to raise capital through an exchange is a direct public offering (DPO). It provides that the company becomes public not by issuing new shares, but by offering securities of the current shareholders. The latter method was recently chosen by the cryptocurrency exchange Coinbase. At its debut trading, Coinbase received an estimate of $ 83 billion. Thus, the final value of the innovative exchange exceeded the capitalization of such traditional stock exchanges as CME Group ($ 74 billion), International Exchange ($ 67 billion), Nasdaq ($ 26 billion).
Inspired by the success of Coinbase, we decided to look back at some of the most successful IPOs.
The founder of the company Jack Ma earned about $ 867 million as a result of the IPO.
The e-commerce giant went public on September 18, 2014, raising $ 25 billion. The company was valued at $ 167.8 billion. Founder Jack Ma raised about $ 867 million as a result of the IPO. Alibaba has selected the New York Stock Exchange (NYSE) for its debut.
Industrial and Commercial Bank of China.
As a result of the public offering, which took place on October 27, 2006, Industrial and Commercial Bank of China received $ 21.9 billion. At the same time, the market capitalization was $ 140 billion, making the company the fifth largest bank in the world. The financial institution offered 48.39 billion shares for about 39 cents apiece. Investors had good reason to pour their money into ICBC - the bank's retail customer base at the time was $ 153 million.
General Motors is headquartered in Detroit.
An IPO signals that a firm has reached a new level of development.
An IPO (initial public offering) - the first public sale of shares - can be a sudden infusion of tens of billions of cash for a company in a matter of hours. As a rule, an IPO has a good effect on the image: it gives a sign to potential investors and partners that the company has reached a new level of development.
Another way to raise capital through an exchange is a direct public offering (DPO). It provides that the company becomes public not by issuing new shares, but by offering securities of the current shareholders. The latter method was recently chosen by the cryptocurrency exchange Coinbase. At its debut trading, Coinbase received an estimate of $ 83 billion. Thus, the final value of the innovative exchange exceeded the capitalization of such traditional stock exchanges as CME Group ($ 74 billion), International Exchange ($ 67 billion), Nasdaq ($ 26 billion).
Inspired by the success of Coinbase, we decided to look back at some of the most successful IPOs.
1. Saudi Aramco
During the IPO on December 11, 2019, the global oil and gas giant Saudi Aramco raised $ 29.4 billion.The IPO value was increased by $ 3.8 billion thanks to the additional sale of 450 million shares. Saudi Aramco was valued at $ 1.7 trillion, more than Microsoft or Apple. The shares were acquired by the families of Saudi Arabia, as well as funds from Kuwait and the UAE.2. Alibaba
The founder of the company Jack Ma earned about $ 867 million as a result of the IPO.
The e-commerce giant went public on September 18, 2014, raising $ 25 billion. The company was valued at $ 167.8 billion. Founder Jack Ma raised about $ 867 million as a result of the IPO. Alibaba has selected the New York Stock Exchange (NYSE) for its debut.
3. SoftBank
Telecommunications arm of SoftBank Group Corp. raised through the IPO $ 23.5 billion. SoftBank sold 1.6 billion shares at 1,500 yen. 90% of investors who purchased shares in an IPO are individuals. Only 10% were distributed among investment funds, management companies and other large players.4. Agricultural Bank of China
Founded in 1951 by order of Chinese leader Mao Zedong, AgBank is a member of the Big Four banks in China. The IPO on July 6, 2010 brought the company $ 22.1 billion. In total, as a result of the dual listing, about 53 billion shares were sold, which is equivalent to 15% of the total share capital.5. Industrial and Commercial Bank of China
Industrial and Commercial Bank of China.
As a result of the public offering, which took place on October 27, 2006, Industrial and Commercial Bank of China received $ 21.9 billion. At the same time, the market capitalization was $ 140 billion, making the company the fifth largest bank in the world. The financial institution offered 48.39 billion shares for about 39 cents apiece. Investors had good reason to pour their money into ICBC - the bank's retail customer base at the time was $ 153 million.
6. AIA
AIA Group Limited, an investment and insurance company based in Hong Kong, went public on October 21, 2010. It has raised over $ 20.5 billion, making it the largest independent pan-Asian life insurance group.7. General Motors
Auto giant General Motors made its debut on the stock exchange on November 16, 2010. Although a year earlier it was involved in a bankruptcy case, which the then government tried in vain to prevent. In December 2008, President George W. Bush initiated $ 50 billion in aid to GM that was battling the global recession. However, this did not help to improve the state of the enterprise. Yet the IPO of 2010 was the largest public offering in the United States. The carmaker raised $ 20.1 billion. The cash injection allowed GM to pay off nearly half of the government aid it received.
General Motors is headquartered in Detroit.
