IPOs are an important step for companies to gain access to capital and advance their operations. Some IPOs of 2014 include Alibaba Group, GoPro, Citizens Financial Group, Virgin America, El Pollo Loco, Weibo Corporation, LendingClub, and IMS Health. These companies are from different industries, ranging from e-commerce to airlines. IPOs are significant events for businesses that make it to this point.
Initial public offerings (IPOs) are significant events for businesses that make it to this point. An initial public offering (IPO) is an important step toward gaining access to capital and advancing a company’s operations.
Every year, a number of fascinating businesses float their stock on the market. Here, we’ll examine what an IPO is, its benefits and drawbacks, as well as the most prominent IPOs of 2014.
Notable IPOs of 2014
Alibaba Group had its IPO on September 19, 2014, with 320.1 million shares offered at a price of $68 per share. The shares opened at $92.70 on the first day of trading and closed at $93.89, an increase of over 38% from the IPO price. The total amount raised from the IPO was $21.8 billion, making it the largest IPO in history at that time.
Alibaba Group is a Chinese multinational technology company specializing in e-commerce, retail, internet, and technology. The company started as an online marketplace for Chinese businesses to sell their products. Today, Alibaba Group is the world’s largest online and mobile commerce company, with a presence in over 200 countries and regions.
GoPro had its IPO on June 26, 2014. Putting up 17.8 million shares for offer at a price of $24 per share. The shares closed at $31.34, raising the company $427 million.
GoPro is an American technology company founded in 2002 that produces action cameras and accessories. Its cameras are designed to capture high-quality footage in extreme conditions, such as during action sports, and have become popular among athletes, adventurers, and content creators.
Citizens Financial Group
Citizens Financial Group went public on September 24, 2014. The company priced its 140 million shares at a price of $21.50 per share. And the shares ended the day with a closing price of $23.08 per share. The company raised $3 billion from the public offering.
Citizens Financial Group is a banking and financial services company headquartered in Rhode Island, USA. The company offers a range of financial products and services to individuals, businesses, and institutions, including banking, lending, and investing.
Virgin America debuted its stock shares on November 13, 2014. Offering 13.3 million shares at a price of $23 per share. The company made a big impact on IPO day and closed well above the opening price at $30 per share. Virgin America raised about $307 million from the IPO.
Virgin America: Virgin America was an American airline that offered low-cost flights with a focus on customer service and entertainment. The airline was founded in 2004 and was acquired by Alaska Airlines in 2018. Its routes covered many major cities in North America, and it was known for its high-tech amenities and stylish cabin design.
El Pollo Loco
El Pollo Loco had its IPO on July 25, 2014. Putting up 7.1 million shares for offer at a price of $15 per share. The shares closed at $24, raising the company $107 million.
El Pollo Loco is a fast-food restaurant chain that specializes in flame-grilled chicken. The company was founded in 1975 in Mexico, and has since expanded to over 480 locations across the United States. In addition to chicken, their menu also includes tacos, burritos, and salads.
Weibo Corporation went public on April 17, 2014. The company priced its 16.8 million shares at a price of $170 per share. And the shares ended the day with a closing price of $20.24 per share. The company raised $285.6 million from the public offering.
Weibo Corporation is a Chinese social media company that operates the microblogging platform Sina Weibo. Similar to Twitter, users can post short messages, pictures, and videos, and follow other users. Weibo is one of the most popular social media platforms in China and has over 500 million registered users.
LendingClub debuted its stock shares on December 11, 2014. Offering 58 million shares at a price of $15 per share. The company made a big impact on IPO day and closed well above the opening price at $23.43 per share. LendingClub raised about $870 million from the IPO.
LendingClub is an online peer-to-peer lending platform that allows individuals and small businesses to obtain loans. The company was founded in 2006 and is headquartered in California, USA. Investors can use the platform to invest in a variety of loans and earn returns on their investments.
IMS Health had its IPO on April 4, 2014. Putting up 65 million shares for offer at a price of $20 per share. The shares closed at $22.20, raising the company $1.3 billion.
IMS Health is a data and analytics company that specializes in providing insights into the healthcare industry. The company was founded in 1954 and is headquartered in Connecticut, USA. Their data and analytics services are used by healthcare providers, pharmaceutical companies, and other organizations to make informed decisions about healthcare products and services.
Mobileye went public on August 1, 2014. The company priced its 35.6 million shares at a price of $25 per share. And the shares ended the day with a closing price of $37 per share. The company raised $890 million from the public offering.
Mobileye is an Israeli technology company that develops advanced driver assistance systems and autonomous vehicle technology. The company was founded in 1999 and was acquired by Intel in 2017. Their technology is used by car manufacturers to improve vehicle safety and to develop self-driving cars.
Box debuted its stock shares on January 23, 2015. Offering 12.5 million shares at a price of $14 per share. The company made a big impact on IPO day and closed well above the opening price at $23.23 per share. Box raised about $175 million from the IPO.
Box is a cloud storage and file-sharing company that allows users to store and share files securely online. The company was founded in 2005 and is headquartered in California, USA. Box’s platform is used by businesses of all sizes to store and share documents, collaborate on projects, and manage workflow.
What is an IPO?
IPO stands for initial public offerings. An initial public offering is when a private company sells its stocks to the public market for the first time. By doing this, a company is transitioning from being owned privately to publicly owned. You will sometimes hear the IPO process referred to as “going public” or “stock launch.” After their initial IPO, people can buy and sell their stock on the New York stock exchange.
Benefits and disadvantages of an IPO
Making an IPO is very big for any company, giving them the chance to grow, build their wealth, and boost their public profile. It also adds a certain level of credibility to the company name. However, there are also some serious disadvantages to consider. Here are a few other benefits and drawbacks of a company making an IPO.
Here is a list of the benefits and drawbacks to consider.
- Access to capital.
- Enhanced visibility and credibility.
- Increased liquidity.
- Employee incentives.
- Being part of the stock market can help a company secure better terms from lenders.
- Additional regulatory requirements.
- Founders may lose control of their company.
- IPO transaction costs.
What is the largest IPO in history?
The largest IPO (initial public offering) in history was the IPO of Saudi Arabian oil company, Saudi Aramco, which was launched in December 2019. The company raised $29.4 billion by selling 1.5% of its shares on the Saudi stock exchange, the Tadawul. The IPO surpassed the previous record held by Chinese e-commerce giant Alibaba, which raised $25 billion in its IPO in 2014.
What happened to the stock market in 2014?
In 2014, the U.S. stock market experienced a relatively strong year as the economy continued to improve. The S&P 500 index gained about 11.4% for the year. And the Dow Jones Industrial Average also posted gains of around 7.5% for the year.
- An IPO (initial public offering) is a significant event for a company as it allows access to capital and can advance its operations..
- The notable IPOs of 2014 included Alibaba Group, GoPro, Citizens Financial Group, Virgin America, El Pollo Loco, Weibo Corporation, LendingClub, IMS Health, and Mobileye.
- Alibaba Group’s IPO was the largest in history at the time, raising $21.8 billion.
- GoPro’s IPO raised $427 million and enabled the company to expand its offerings of action cameras and accessories.
View Article Sources
- Latham, S., & Braun, M. R. (2010). To IPO or not to IPO: Risks, uncertainty and the decision to go public. British Journal of Management, 21(3), 666–683
- IPOs — Nasdaq
- Number of IPOs in the U.S. 1999-2022 | Statista
- S&P 500®. (n.d.) — S&P Dow Jones Indices
- Companies That Had Their IPO In 2017 — SuperMoney
- Companies that had their IPO in 2015 — SuperMoney
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- Companies That Had Their IPO In 2022 — SuperMoney
- Companies That Had Their IPO In 2019 — SuperMoney
Allan Du is a personal finance writer passionate about helping people take control of their finances. Allan strives to present readers with the right knowledge and tools, so they can make informed decisions about their money and build wealth. When he is not writing about finance, Allan enjoys pursuing his other interests, including powerlifting, kickboxing, and investing. He is an active follower of economic and political trends, always keeping watch on the latest developments that could impact the financial world.