Initial Public Offering or IPO is the initial exposure of a company on the public stock market. It is a process in which the first stock or shares of a company go public.
Now, a company cannot simply go public as soon as it starts. A lot of work and time goes into establishing its position within the market. Usually, an IPO is helpful for capital raise and enhances preceding investors.
Towards the end of September 2018, it was noted that more than 50% of returns were generated with 38 offerings. Currently, numerous IPOs are ranked from biggest to smallest in American stock markets. All of them are well-known names that we all have heard of in today’s time.
Here, we will be listing the top 5 biggest IPOs within the American stock market that are still dominating the market persistently.
List of 5 Biggest IPOs in the American Stock Market
About 70% of the overall trading capacity in the US is algorithmic trading. To provide better insight, we have discussed various important details of the top 5 biggest IPOs in the American stock market. Hence, you can find details such as initial IPO date, raised amount, and offer price, respectively.
Moreover, we have ranked the following list as per the IPO amount generated by each of them. Without further ado, let’s get to know them one by one in the following section.
As one of the most recognized Chinese e-commerce brands, Alibaba was founded in the year 1999. The organization is led by 18 founders, with Jack Ma being one of them.
During the initial period of their company, the funding was insufficient, but they kept on following the vision. They eventually improved precisely and stood robust.
In 2014 when they generated their IPO, they had an earning of 3.8 billion USD annually, with 279 million purchasers. Ever since, their business has escalated throughout different domains with cloud computing, digital marketing, and transport.
Their impressive work has helped them generate a 110% return in just 4 years. As a result, Alibaba has become a renowned name and further tops the list of biggest IPOs in the American stock market.
Date of IPO: Sept 19, 2014
IPO amount generated: $21.8 billion
Price Offered: $68.00
Just 2 days before VISA was about to generate it’s IPO, JPM took the investors of Wall Street by storm when they decided to purchase Bear Stearns with a 93% discount. The cost was only $2 per share to the prior close for a $30 billion dollar loan deal with the Federal Reserve.
Visa had 13,000 financial institutions and 1.5 billion cards conjugated with it. On the first day of IPO, the shares took a surge of 28%. Investors who invested in Visa are certainly benefitting by the same, as the stock keeps surging from the offer price.
Date of IPO: Mar 18, 2008
IPO amount generated: $17.9 billion
Price Offered: $44.00
3) Enel SpA
Speaking of Enel SpA, the IPO launched by them had few things to take note of. First of them was that it was a utility, and secondly, it was a foreign organization (Italian Utility).
Although it was pretty well known globally, on the very first day, their shares protruded with an inclination of a mere 0.03%. As Enel spa was state-based, Italy accepted the trade-in to improve its revenue through a wide-scale policy of privatization.
The IPO of Enel gained huge popularity as it became the second-largest deal surge within the U.S. Stock Market. However, the traction of the stock was lesser and was later delisted from the listing. This happened due to inadequate trade capacity.
Date of IPO: Nov 2, 1999
IPO amount generated: $16.5 billion
Price Offered: $45.23
The IPO for Facebook had a lot of chaos that was surrounding it. It was perceived that there would be a slugging enhancement in the user base.
On the other hand, the platform was not very welcoming on mobile devices. Apart from that, there was a delay in the deal due to the NASDAQ issue.
It resulted in a massive loss of 500 million USD for the investors who were investing in Facebook. The entire situation kept deteriorating, and their shares got down to 20 USD.
However, Mark Zuckerberg stood like a rock and focused on enhancing the lacking. He started updating the application and further made purchasing deals of popular platforms like WhatsApp and Instagram.
Being an organization that just got launched in 2004, Facebook has impressively done a great job. Currently, it is counted as one of the 10 biggest organizations that are trading in the US stock markets.
Date of IPO: March 18, 2012
IPO amount generated: $16.0 billion
Price Offered: $38.00
5) General Motors
It is known for its famous brand names like Hummer, Saturn, Chevrolet, GMC, and many more.
In June 2009, the organization underwent a financial dip and opted for bankruptcy. A financial.assistance or bailout of $50 billion was rendered by the Federal government.
However, that was not the end of the company. It worked on different areas by cutting costs, started Chinese market investments, etc., and just after two years generated an IPO. Later in the year 2011, it produced a profit of $4.7 billion.
Date of IPO: Nov 18, 2010
IPO amount generated: $15.8 billion
Price Offered: $33.00
To summarize, these were the top 5 biggest IPOs in the American stock market to date. While Alibaba is leading with an IPO amount of 21.8 billion USD, Visa, Enel SpA, Facebook, and General Motors have been ranked as per their total amount generated from the IPO launch.
All of these big names are certainly on top because they have been consistent and hard-working even during hard times. Apart from that, traders have to be well informed of the rules and regulations of the market.
They need to be further familiar with PDT rules that include minimum equity and buying power limitations, as well as the total number of trades that they can execute.