Some most notable Initial Public Offerings (IPOs) of 2012 include companies such as Facebook, Yelp, Workday, Palo Alto Networks, Michael Kors, Splunk, Kayak Software, and ServiceNow. IPOs are a major step in accessing funding for businesses.
Initial public offerings (IPOs) mark a significant milestone for companies looking to raise capital and expand their business. Going public is no easy feat, but it can be an excellent opportunity for companies to access new sources of funding and gain exposure. Join us as we explore the exciting world of IPOs and dive into the pros and cons of going public. But first, we’ll take a look at some of the most notable IPOs of 2012 that made headlines and shook up the market.
Notable IPOs of 2012
Facebook, the future tech giant, had its IPO on May 18, 2012. They offered 421.2 million shares at a cost of $38 per share. The stock had a relatively tame IPO day and closed at $38.23 per share.
Facebook is a social networking platform that allows users to connect with friends and family, share content, and communicate with others. With over 2.8 billion monthly active users, Facebook has become one of the most widely used social media platforms in the world and has expanded to include other apps and services such as Instagram and WhatsApp. The company Facebook would eventually go on to rename itself to Meta.
Yelp debuted its stock shares on March 1, 2012. Offering 7.15 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 $24.58 per share. Yelp raised about $107.25 million from the IPO.
Yelp is a platform that provides user-generated reviews of local businesses such as restaurants, shops, and service providers. Yelp also offers a range of services to help businesses manage their online presence and reputation, including advertising and analytics tools.
Workday went public on October 11, 2012. With an offering of 22.75 million shares. The shares opened at a price of $48.05 per share. The stock had a slightly positive reaction on its first day and closed at $48.69 per share. Workday would end up raising $637 million from the IPO.
Workday is a cloud-based software company that provides human capital management and financial management solutions for businesses. Workday’s software suite includes tools for managing HR, payroll, benefits, and other employee-related processes, as well as financial planning and accounting software for enterprise finance teams.
Palo Alto Networks
Palo Alto Networks had its IPO on July 20, 2012. The company offered up to 6.2 million shares at a price of $42 per share. Eager traders pushed the share price to $53.13 per share at closing.
Palo Alto is a cybersecurity company that provides advanced firewall and cloud security services to protect enterprise networks and endpoints. Palo Alto Networks’ platform uses machine learning and automation to detect and prevent cyber threats and is used by organizations of all sizes to secure their digital assets and data.
Michael Kors went public on December 14, 2011. The company priced its 47.2 million shares at a price of $20 per share. And the shares had a solid performance on opening day with a closing price of $24.20 per share. The company raised $944 million from the public offering.
Michael Kors is a luxury fashion company that designs and sells clothing, accessories, and fragrances. Michael Kors is known for its high-end fashion products that are popular with celebrities and fashion enthusiasts around the world and also operates a number of retail stores and e-commerce sites.
Splunk went public on April 19, 2012. The business priced its 13.5 million shares at a price of $17 per share. And the shares had a tremendous performance with a closing price over 100% above the opening price, at $35.48 per share. $230 million was raised from the IPO.
Splunk is a software company that provides a platform for machine data analysis, helping businesses to gain insights and make informed decisions. Splunk’s software collects and analyzes machine-generated data from a wide range of sources, including applications, servers, and devices, and provides real-time insights and dashboards for IT and business users.
Kayak Software had its IPO on July 20, 2012. They priced 3.5 million shares at $26 per share. The stock did well during the opening day and the price per share closed at $33.18. Kayak would raise $91 million from the IPO.
Kayak Software is a travel search engine that allows users to compare prices for flights, hotels, rental cars, and other travel-related services. Kayak aggregates data from a range of travel providers to provide users with comprehensive and transparent information on travel options and prices and also offers a range of tools and features to help users plan and book their trips.
ServiceNow went public on June 28, 2012. The company priced 11.65 million shares at $18 per share. The shares closed at $24.60 per share, raising the company $209.7 million.
ServiceNow is a cloud computing company that provides enterprise IT service management and automation solutions to help businesses streamline and improve their operations. ServiceNow’s platform allows IT teams to automate and standardize their service delivery processes and also includes a range of features for managing other enterprise services such as HR and customer service.
What is an IPO
IPOs are 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, even 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 happened to the stock market in 2012?
The stock market in 2012 experienced a mixture of both positive and negative events throughout the year, resulting in a somewhat volatile market overall. Overall, the stock market in 2012 ended up being relatively strong, with the S&P 500 index finishing the year up approximately 13%. However, the ongoing concerns over the European debt crisis and the potential impact of policy changes in the US continued to weigh on investors’ minds throughout the year.
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 went public in 2012?
In 2012, a total of 157 companies went public through initial public offerings (IPOs) in the United States. A slight increase from the previous year.
- Initial Public Offerings (IPOs) are significant milestones for companies looking to raise capital and expand their business.
- Going public can provide new sources of funding and gain exposure, but it is no easy feat.
- Notable IPOs of 2012 include Facebook (now Meta), Yelp, Workday, Palo Alto Networks, Michael Kors, Splunk, Kayak Software, and ServiceNow.
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
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- Number of IPOs in the U.S. 1999-2022 | Statista
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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.