Companies That Had Their IPO In 2014

 

Companies That Had Their IPO In 2014


Companies That Had Their IPO In 2014

In 2014, the financial world witnessed a surge in Initial Public Offerings (IPOs), with several companies going public and making headlines. An IPO is a significant event in a company's life when it transitions from being privately owned to publicly traded. This article explores the companies that had their IPO in 2014, the factors behind this IPO boom, the success stories, and the challenges faced by some of these companies.



What is an IPO?

An Initial Public Offering (IPO) is the process by which a privately held company offers its shares to the public for the first time. It allows the company to raise capital by selling ownership stakes to investors. IPOs are often seen as a milestone for companies, providing them with opportunities for growth and expansion.



The IPO Boom of 2014

2014 was a remarkable year for IPOs, witnessing a surge in companies going public. Several factors contributed to this IPO boom:


1. Favorable Economic Conditions

The global economy had rebounded from the 2008 financial crisis, creating a favourable environment for companies to go public. Investors were more willing to take risks, and this boosted confidence in the IPO market.


2. Investor Appetite for Tech Companies

Technology companies, especially those in the tech sector, were in high demand among investors. Companies with innovative products and disruptive technologies saw strong interest from both retail and institutional investors.


3. Low-Interest Rates

With interest rates at historic lows, investors were seeking better returns than traditional investment options could offer. IPOs, with their potential for high growth, became an attractive alternative.


4. Positive Market Sentiment

The stock markets were performing well, and the overall sentiment was optimistic. This positive market sentiment encouraged companies to take advantage of favourable valuations and launch their IPOs.



Notable Companies That Had Their IPO in 2014

Let's take a closer look at some of the notable companies that went public in 2014:


1. Alibaba Group (NYSE: BABA) - 

The largest IPO in U.S. history, Alibaba raised $25 billion in its IPO. The company is a Chinese e-commerce giant.

IPO Date: Sept. 19, 2014

IPO Price: $68

Stock Price as of Sept. 26: $78.91

Return Since IPO: +16%


2. GoPro (NASDAQ: GPRO) - 

The action camera company went public in June 2014 and raised $3.4 billion. GoPro's stock price has since fallen significantly, but the company is still a major player in the action camera market.

IPO Date: June 25, 2014

IPO Price: $24

Stock Price as of Sept. 26: $4.99

Return Since IPO: -79%


3., Grubhub (NYSE: GRUB) - 

The online food delivery company went public in April 2014 and raised $1.6 billion. Grubhub is one of the leading food delivery companies in the United States.

IPO Date: April 4, 2014

IPO Price: $26

Stock Price as of Sept. 26: N/A

Return Since IPO: N/A


4. Virgin America (NASDAQ: VA) - 

The airline company went public in December 2014 and raised $3.2 billion. Virgin America was acquired by Alaska Airlines in 2016.

IPO Date: Nov. 13, 2014

IPO Price: $23

Stock Price as of Sept. 26: N/A

Return Since IPO: N/A


5. LendingClub (NASDAQ: LC) -

 The peer-to-peer lending company went public in December 2014 and raised $1.5 billion. LendingClub is one of the leading peer-to-peer lending companies in the United States.

IPO Date: Dec. 10, 2014

IPO Price: $15

Stock Price as of Sept. 26: $11.12

Return Since IPO: -26%


6. TrueCar (NASDAQ: TRUE) -

 The car-buying website went public in December 2014 and raised $1.2 billion. TrueCar is one of the leading car-buying websites in the United States.

IPO Date: May 16, 2014

IPO Price: $9

Stock Price as of Sept. 26: $1.61 

Return Since IPO: -82%


7. Zendesk (NYSE: ZEN) -

 The customer support software company went public in October 2014 and raised $1.1 billion. Zendesk is one of the leading customer support software companies in the world.

IPO Date: May 15, 2014

IPO Price: $9

Stock Price as of Sept. 26: $75.70

Return Since IPO: +741%


8. Synchrony Financial (NYSE: SYF) -

 The consumer financial services company went public in December 2014 and raised $21.4 billion. Synchrony Financial is one of the leading consumer financial services companies in the United States.

IPO Date: July 31, 2014

IPO Price: $23

Stock Price as of Sept. 26: $28.21

Return Since IPO: +23%


9. Coupons.com (NASDAQ: COUP) -

 The online coupon company went public in May 2014 and raised $200 million. Coupons.com was acquired by RetailMeNot in 2016.

IPO Date: March 7, 2014

IPO Price: $16

Stock Price as of Sept. 26: $2.12

Return Since IPO: -87%


10. El Pollo Loco Holdings (NASDAQ: LOCO) - 

The fast-food chain went public in December 2014 and raised $450 million. El Pollo Loco is a major player in the fast food industry.


11. Ultragenyx Pharmaceutical (NASDAQ: RARE) -

 The rare disease drug company went public in December 2014 and raised $311 million. Ultragenyx is a leading developer of rare disease drugs.

IPO Date: Jan. 30, 2014

IPO Price: $21

Stock Price as of Sept. 26: $39.96

Return Since IPO: +90%


12. Arista Networks (NASDAQ: ANET) -

 The networking company went public in June 2014 and raised $1.4 billion. Arista Networks is a leading provider of networking equipment.


13. Energous (NASDAQ: WATT) -

 The wireless power company went public in December 2014 and raised $130 million. Energous is developing wireless power technology.



These are just a few of the companies that had their IPO in 2014. Many other companies went public that year, representing a wide range of industries.



Analyzing the Success Stories

Several factors contributed to the success of these IPOs:


 Key Strategies for a Successful IPO

I. Robust Business Model: All successful IPO companies had a well-defined and scalable business model, which instilled confidence in investors about their future growth prospects.


II. Strong Leadership: The companies were led by visionary founders and experienced management teams, demonstrating their ability to execute plans effectively.


III. Transparency: These companies maintained transparency throughout the IPO process, providing comprehensive information to potential investors.



Market Conditions and Timing

The success of an IPO is heavily influenced by market conditions and the timing of the offering. Companies that capitalized on positive market sentiment and launched their IPOs during favourable economic conditions reaped the greatest rewards.



The Challenges Faced by Some Companies

While 2014 saw numerous successful IPOs, not all companies had a smooth journey. Some faced significant challenges, such as:


1. Market Volatility: Companies that went public during periods of market volatility experienced fluctuations in their stock prices, which affected investor confidence.


2. Overvaluation Concerns: Overvalued IPOs often faced correction in their stock prices after the initial excitement subsided, leading to potential investor dissatisfaction.




Conclusion

The year 2014 witnessed a notable IPO boom, with several companies going public and creating buzz in the financial markets. Companies that had their IPO during this period experienced varying degrees of success, with some becoming iconic success stories and others facing challenges.


As the IPO market continues to evolve, companies need to focus on sound business strategies, strong leadership, and market timing to maximize the benefits of going public. The success stories of 2014 serve as a testament to the potential rewards of a well-executed IPO.




Frequently Asked Questions (FAQs)

1. Are IPOs only for tech companies?

No, while tech companies often dominate the IPO landscape, companies from various sectors can go public if they meet the necessary requirements.


2. What are the risks of investing in IPOs?

Investing in IPOs carries inherent risks, such as market volatility and the potential for overvaluation. It's essential to conduct thorough research before making investment decisions.


3. Can small businesses go public through an IPO?

Yes, small businesses with a solid growth trajectory and a compelling business plan can also consider going public through an IPO.


4. How can investors participate in an IPO?

Investors can participate in an IPO by purchasing shares through brokerage accounts or getting allocated shares through their brokerage firm.


5. What happens to a company after an IPO?

After an IPO, a company's shares become publicly traded on stock exchanges, and the company is subject to regulatory requirements and reporting obligations.






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