Initial public offerings, or possibly more easily understood as a company’s launch on a stock market, have become food and drink for investors and turned founders into millionaires and in some cases billionaires…
In 2020, there were 407 IPOs in the US, which was double the number the previous year, Statista stated.
The CEO Magazine looks at the performance of the five biggest IPOs in 2020 and how the businesses are performing now. It should be noted that the S&P 500 index rose one per cent on Thursday, hitting a new high, as did the Dow Jones Industrial Average and Russell 2000 index of smaller companies.
The holiday rental online marketplace, founded by CEO Brian Chesky, Joe Gebbia and Nathan Blecharczyk in 2008, went public on 10 December 2020, with the IPO at US$68 (a share), and a market capitalisation of US$86.5 billion. It raised US$3.5 billion in the IPO.
While 2020 was dominated by the coronavirus pandemic, Airbnb still took 193 million individual bookings from more than four million hosts and 54 million guests, a 41 per cent fall in bookings on the previous year. Airbnb’s revenue fell 30 per cent to US$3.4 billion. Its share price was US$197.87 at the close of trading on Thursday.
The food delivery service, founded by CEO Tony Xu, Andy Fang, Stanley Tang and Evan Moore in 2013, went public on 9 December 2020, with the IPO at US$102 (a share), and a market capitalisation of US$60.2 billion. It raised US$3.37 billion in the IPO.
In its first financial report since its IPO, Doordash took US$970 million in revenue over the final quarter of 2020, up from nearly US$300 million over the same period in 2019 as people locked in or under curfew from COVID used its service. Its share price was US$144.97 at the close of trading on Thursday.
The cloud-based data warehousing company received more than US$1.4 billion in funding before going public. Founded by Benoit Dageville, Marcin Zukowski and Thierry Cruanes in 2012, it debuted on the New York Stock Exchange on 16 September 2020. Stock began trading at US$245 per share, with a market capitalisation of US$67.9 billion, more than five times its US$12.4 billion valuation in February 2020, reported CNBC.
Snowflake’s revenue grew 119 per cent year over year to…
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