This post will expose you to the largest IPOs in history. Last month MTN, a popular mobile network company did a public offer. We believe it was a successful offer and it was oversubscribed (though we are still waiting for official report to confirm this).
Our editorial crew has done a special on the largest IPOs in history (initial public offers). Please enjoy it and let us read from you.
What is an IPO?
IPOs also called Initial Public Offerings or Stock market launch is a public offerings where the shares of the companies are sold to the public for both institution and retail investors to buy. Companies use IPOs to raise capital or funds for their business operations
One or more banks are required to underwrite IPOs and they also make proper arrangements for the shares to be listed on stock exchanges.
Related: 17 reasons why school businesses are not making profits
Why companies do IPOs?
Companies go public through an IPO in order to raise funds for their businesses. Every business entity will always try to inject fresh funds into their businesses in order to stay competitive and profitable.
IPOs give companies the opportunity to raise capital from the investing public.
This guide will show you some of the largest IPOs in history that have happened in the business world. This report will show you how big they were when their IPOs were held.
Why must you learn about longest IPos in History?
The following are the reasons why you need to learn about the largest IPOs in history.
- To learn about IPOs and how they work
- To update your knowledge about how businesses raise capital
- To discover the profiles of the companies that have held the best IPOs ever
- To assist you to make informed investment decisions
Top 10 largest IPOs in history
I have compiled a list of the largest IPOs ever below. Some of the companies in this list will surprise you because non-US companies occupy the top three places on the list.
1. Largest IPOs in history: Alibaba Group Holding Limited
This is a diversified e-commerce business outfit located in china. Alibaba Group Holding Limited approached the public to raise capital on September 18, 2004 at an amazing $21.8 billion.
After days of going public to raise funds, the underwriters brought the option to sell more shares of the company to the public. This brought the total IPO sold to $25 billions.
Another unique thing about this IPO was that as a technology company, it got listed on the New York Exchange (NYSE ) for this debut listing instead of the traditional NASDAQ where technological companies get listed. The debut IPO list was very successful.
2. Largest IPOs in history: Agricultural Bank of China Ltd
This IPO went public on July 7, 2020 and is the second biggest IPO ever. Agricultural Bank of China Ltd, through this public offering was able to raise $22. 1 billion after the initial $19.2 billion was completely subscribed.
3. Largest IPOs in history: Industrial and commercial Bank of China
The Industrial and Commercial Bank of China (ICBC Bank) went public on October 20, 2006 and raised a total capital of $19.1 billion from the public. Just like the first two companies above, ICBC Bank, on January 19, 2007 exercised the over allotment option to lift its IPO to $21.9 billion.
4. General Motors Company
This car manufacturer located in the US approached the public to raise capital for its business on November 16, 2020. The company had filed for bankruptcy a year before it went to public.
General Motors was able to raise $20. 1 billion at its IPO. This makes it the fourth largest IPO in history and the biggest in the US.
5. NTT DOCOMO,INC.
This Tokyo based telecommunications company went public on October 22,1998. The company was able to raise about $18.4 billion from the market.
Its IPO was underwritten by Gold man Sachs Asia. It was able to officially delist its American Depositry shares from the New York Stock Exchange (NYSE)on April 13,2018.
6. Visa Inc
Visa Inc. a credit and debit card processing company had its IPO on March 18, 2008. It was able to raise around $17.9 billion during it’s initial public offering.
7. AIA Group Limited
This company, located in Hong Kong, is an investment and insurance company. It went public on October 21,2010.
The company was able to raise over $20.5 billion during its IPO. This feat makes it the largest independent pan Asian life insurance company that is publicly listed.
This Italian company do business in the gas and electric market in the Americas and Europe. Enel went public on November 1,999 raising about $17.4 billion.
The IPO of Facebook remains one of the most talked about ever. This social media technology company has, as at June 2018, an average of 1.47 billion daily active users.
Facebook got listed on May 1, 2012 and was able to raise a little over $16. The IPO was however characterized by lots of trading issues.
10. Deutsche Telecom AG
This German telecommunications company was able to raise just over $13 billion on November 17, 1996. This makes it the tenth biggest IPO in history.
Deutsche Telecom AG has, as at March 2020, 184 million mobile customers, 21 million broadband lines about 27.5 million fixed network lines. Deutsche Telecom AG owns T-Systems and T-Mobile.
Those are the largest IPOs in history shown in order of their strength and hugeness. Please share this post with your friends on social media.