In 2013, Twitter, Hilton Worldwide, Zoetis, CDW Corporation, Norwegian Cruise Line, Noodles & Company, Sprouts Farmers Market, and Burlington Stores went public. An IPO occurs when a private company offers its stock to the public market for the first time, allowing companies to raise capital by selling shares of ownership to investors. On the positive side, going public can bring a level of prestige and credibility to a company’s name. On the negative side, the costs of an IPO and regulatory requirements may be significant.
IPOs represent a significant milestone for companies that achieve this stage. They provide a crucial means for businesses to raise capital and expand to the next level. Each year, a variety of exciting companies make their shares public, and in this article, we will delve into what IPOs are, their pros and cons, and the most noteworthy IPOs of 2013.
Notable IPOs of 2013
Twitter debuted its stock shares on November 7, 2013. Offering 70 million shares at a price of $ $26 per share. The company made a big impact on IPO day, opening at $45.10 per share and closing at $44.90 per share. Twitter raised about $1.82 billion from the IPO.
Twitter is a social media platform that allows users to post and interact with messages called “tweets”. It is used for sharing news, opinions, and updates, and has become an important tool for marketing and communication.
Hilton went public on December 12, 2013. With an offering of 117.6 million shares at a price of $20 per share. The stock had a slightly positive reaction on its first day and closed at $21.50 per share. Hilton would end up raising $2.35 billion from the IPO.
Hilton Worldwide is a multinational hospitality company that owns and operates a wide range of hotels and resorts across the world. They offer a variety of lodging options for both business and leisure travelers.
Zoetis had its IPO on February 1, 2013. The company offered up to 86.1 million shares at a price of $26 per share. Eager traders pushed the share price to $31.01 per share at closing. The amount of money raised was $2.24 billion.
Zoetis is a global animal health company that develops and manufactures medicines, vaccines, and diagnostic products for livestock and pets. They aim to improve the health and wellbeing of animals and enhance the productivity of the livestock industry.
CDW debuted its stock shares on June 27, 2013. Offering 23.3 million shares at a price of $17 per share. The company made a big impact on IPO day and closed well above the opening price at $18.37 per share. CDW Corporation raised about $396 million from the IPO.
CDW Corporation is a leading provider of technology products and services for businesses, government agencies, and educational institutions. They offer a wide range of hardware, software, and networking solutions to help their clients improve productivity and efficiency.
Norwegian Cruise Line
Norwegian Cruise Line had its IPO on January 17, 2013. The company offered 23.5 million shares at a price of $19 per share. Eager traders pushed the share price to $24.85 per share at closing. The company raised $447 million.
Norwegian Cruise Line is a cruise line company that offers a variety of travel experiences to destinations around the world. They offer a range of cruise options, from luxury to budget-friendly, and cater to a wide range of travelers.
Noodles & Company
Noodles & Company had its IPO on June 28, 2013. The company offered up to 5.36 million shares at a price of $18 per share. The share price performed well and closed at $36.75 per share. The amount of money raised was $96.5 million.
Noodles & Company is a fast-casual restaurant chain that specializes in serving noodles from around the world. They offer a variety of dishes, including pasta, soups, and salads, with customizable options to meet different dietary needs.
Sprouts Farmers Market
Sprouts Farmers Market went public on August 1, 2013. The company priced 22 million shares at $18 per share. The shares closed at $40.11 per share, raising the company $333.6 million.
Sprouts Farmers Market is a specialty grocery store chain that focuses on natural and organic products. They offer a wide range of fresh produce, meat, dairy, and bulk goods, as well as vitamins and supplements.
Burlington Stores went public on October 2, 2013. The company priced 13.3 million shares at $17 per share. The shares closed at $25.01 per share, raising the company $226.1 million.
Burlington Stores is a national off-price department store chain that offers a wide range of discounted products, including clothing, accessories, home goods, and toys. They aim to provide value to customers by offering high-quality products at affordable prices.
What is an IPO
is when a private company offers its stock to the public market for the very first time, effectively making the transition from being privately owned to publicly owned. The IPO process is sometimes referred to as “going public” or “stock launch,” and it allows companies to raise capital by selling shares of ownership to investors.
Once a company goes public, its shares are listed and traded on a stock exchange such as the New York Stock Exchange or NASDAQ. This means that anyone can buy and sell shares of the company, potentially making a profit if the company performs well in the stock market.
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.
How many companies had their IPO in 2013?
251 companies became public in 2013. A significant increase from 2012 which had 157.
- An initial public offering (IPO) is a significant milestone for companies to raise capital and expand to the next level.
- Noteworthy IPOs of 2013 include Twitter, Hilton Worldwide, Zoetis, CDW Corporation, Norwegian Cruise Line, Noodles & Company, Sprouts Farmers Market, and Burlington Stores.
- IPOs can provide companies with increased credibility and prestige, as well as access to more capital and potential investors.
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
- Companies That Had Their IPO in 2011 — SuperMoney
- Companies That Had Their IPO In 2016 — SuperMoney
- Companies That Had Their IPO In 2022 — SuperMoney
- Companies That Had Their IPO In 2014 — 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.