The Titans of Wall Street: A Look at the Largest IPOs in History
One of the most crucial and important moves a company may ever take in its lifespan is an initial public offering (IPO). It not only symbolizes a stage of development, but it also offers investors the possibility to acquire a stake in it. After all, completing the IPO procedure entails making the business public and allowing it to trade on a stock exchange.
The firm’s standing and how effective is its IPO marketing are two aspects that affect the buzz, but it’s also crucial that the company has a distinctive business plan, a successful track record, and a market that is expected to grow.
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Here’s the list of the top 10 IPOs:
Saudi Aramco
One of the biggest corporations in the world is this Saudi Arabian organization. Originally known as the Saudi Arabian Oil Company discovers, produces, transports, and sells crude oil and natural gas in its capacity as an energy firm.
In December 2019, the business went public and started trading on the Saudi Stock Exchange. It initially sold 3 billion shares to raise $25.6 billion. After the corporation sold an additional 450 million shares, that initial amount was increased to $29.4 billion. It overtook Alibaba to claim the title of largest IPO in history, surpassing it.
Saudi officials made the decision not to list abroad so that domestic investors could maintain control. By buying a share of an exchange-traded fund (ETF), such as the iShares MSCI Saudi Arabia ETF (KSA), which invests in an array of Saudi stocks, you can, nevertheless, make an indirect investment in it.
Ali Baba
Alibaba’s (BABA) IPO broke all previous records and held the title of largest IPO ever until Saudi Aramco overtook it. Even after Alibaba went public, the buzz about it persisted. The underwriters exercised an option to sell more shares four days following the IPO, increasing the total IPO to $25 billion. Alibaba picked the New York Stock Exchange (NYSE) for its initial public offering, even though technology companies typically list on NASDAQ. Credit Suisse underwrote the IPO in large part.
Soft Bank
It isn’t a bank, despite what its name might lead you to believe. The business genuinely offers a variety of communication services, including ISP services, mobile and fixed-line communications, and more. After the company finished its first public offering in December 2018, raising more than $21 billion, shares started trading on the Tokyo Stock Exchange.
NTT Mobile Communication Network
The Tokyo-based telecommunications company NTT Mobile Communication Network, popularly known as NTT DoCoMo, entered the public market in October 1998. Amid the 1997 Asian financial crisis, the company declared its intention to go public. NTT controlled about 57% of the mobile market in Japan at the time of the offering. Its IPO provided it at the time Japan’s third-largest market capitalization.
Visa
Processing debit and credit cards are Visa’s area of expertise. More than 70 million merchants utilize the company’s services globally, with its headquarters in San Francisco, California. Every year, the business conducts more than 206 billion transactions. The company’s public market debut during the world financial crisis may seem odd. And, incredibly, it was able to raise about $17.4 billion. Since each share was valued at $44, the business sold 406 million shares overall.
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Because Visa doesn’t lend money to people, it is less vulnerable to default and late payments than other financial services organizations. Fees for processing payments are how it generates revenue.
AIA Group
The Hong Kong-based investment and insurance firm AIA currently conducts trading on the HKEX. The business offers customers in 18 different Asian nations a variety of financial services, including insurance. It became the largest independent, publicly traded pan-Asian life insurance firm after raising close to $18 billion. Additionally, American Depositary Receipts (ADRs) for the business are available to US investors.
Enel Spa
Despite not being well-known in the United States, Enel (ENIA) is well-known in Italy, where it is headquartered. Additionally, the firm operates 2.2 million kilometers of power lines that deliver electricity to customers in 31 countries throughout Europe and Asia. When the business went public, it anticipated raising roughly $19 billion, but investor enthusiasm dwindled. Nevertheless, Enel was able to raise around $16.4 billion, ranking it among the biggest IPOs ever.
Meta (formerly known as Facebook)
The prominent social media platform’s creator (META) IPO was one of the most anticipated in history. On May 17, 2012, it went public and raised a little over $16 billion. The introduction of this social media technology company was plagued by trade problems and dubious charges of information-sharing. After the market opened, its stock fell, and over the next several months, the value of its shares decreased by around 40%. By August 2012, investors had lost an estimated $50 billion.
General Motors
Midway through November 2010, General Motors (GM) made its debut, generating over $16 billion and an additional $4.35 billion in preferred shares. Given that the corporation had filed for bankruptcy a year earlier with government approval, this is a significant accomplishment. Any U.S.-based company’s largest IPO ever was this one. Cadillac, Buick, GMC, and Chevrolet all belong to General Motors.
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ICBC
A global provider of financial services with headquarters in Beijing is ICBC Bank, also known as the Industrial and Commercial Bank of China. ICBC, which was established in 1984, offers a variety of financial goods and services to corporate and retail customers in Asia, Europe, North and South America, and Oceania. When it started trading on the Hong Kong Stock Exchange (HKG), it was able to top the list. The company raised an extra $5 billion in the capital by concurrently listing its stock on the Shanghai Stock Exchange.
Conclusion
The much-anticipated Alibaba IPO held the record for the biggest IPO up until Saudi Aramco surpassed it in 2019 and took the top spot. Asian businesses are overwhelmingly represented in the top 10 worldwide IPOs in history, as can be shown. The top 10 global IPO list only includes three American companies: Visa, Facebook, and General Motors.
You can get in on the “ground floor” of a business with significant growth potential by investing in an IPO. Your opportunity for a quick profit in a short amount of time may be an IPO. Long-term wealth growth could also be aided by it.
