Initial Public Offering (IPO) can be defined as the first sale of stock by a private company to the public. This usually is issued by smaller companies seeking money and capital to expand. However, large companies have now invested their time in IPOs as well.
This article intends to examine the top 10 IPOs of the last 10 years From Google to Zynga to Facebook, who will make it to # 1?
Facebook filed for an initial public offering in February of 2012. This could put the social network at a value between $75 billion and $100 billion. It may also be considered one of the biggest U.S. stock-market debuts of all time because of this.
The company hopes to raise $10 billion and has given potential buyers their first look at the financials. Financials showed that Facebook produced a $1 billion profit last year from $3.71 billion in revenues. 85% of those revenues come from advertisement, with the rest from social gaming and other fees.
However, there is only one way to define Facebook and that is with a cliché called “social Bazaar” where friends chitchat, play games and can exchange 250 million photos a day.
As an American multinational corporation, the internet and software company specializes in internet search, cloud computing and advertising technologies. The company began as an incorporated company in September 4, 1998. Its initial public offering followed in August of 2004. Larry Page, Sergey Brin and Eric Schmidt agreed to work for Google for 20 years.
In its public offerings, the company intended to distribute 19,605,052 shares at a price $85 each. They were sold at a unique online auction using a system built by Morgan Stanley and Credi Suisse.
The shares hit $700 after the 2007 IPOs. Strong sales and earnings were the causes of the surge.
This is the largest business to business platform in China. It was founded by Jack Ma and 18 others in 1999. It now claims to have 65 million registered users in more than 240 countries as of March of 2011.
The New York Times and Wall Street Journal both reported on the IPO for the company. The offering was significant as it was the biggest by any Chinese company, raising approximately $2 billion. Yahoo owns 39% of the company and offered to buy 10% of the available shares.
Yandex is Russia’s largest internet search engine and a leading internet and technology company. Their goal is to provide easy access to information available online and to answer any questions Russian speaking users could have. They furthermore rely on their in-depth understanding of the Russian language, culture and internet market in order to give users a sophisticated web search and information retrieval services.
In May of 2011, the company filed for an IPO on NASDAQ under YNDX at $20 to $22 per share. The company hopes to raise $1.2 billion from the sale of 15, 400, 000 shares.
Shanda Interactive Entertainment Ltd. is a Chinese operator of online games and book publisher. It is based in Shanghai and was established in December of 1999. In 2006, the company announced 460 registered accounts and the average of 1.2 million players at any given time. It was listed on NASDAQ exchange, raising $151.9 USD.
In 2009, the company began offering IPOs. The company was able to raise $1 billion in the richest U.S. Stock Market debut in 2009. Shanda was also able to sell more than 13 million American Depositary Shares. However, by September of the same year the company began to slip by 14%.