The most notable IPOs of 2020 include companies such as Snowflake, Unity Software, DoorDash, Airbnb, Warner Music Group, Lemonade, Palantir Technologies, Vroom, Asana, and Peloton Interactive. IPO is an acronym for initial public offering, where a private company sells its stocks to the public market. Going public is a significant step for companies to access new sources of funding and expand their business, but it can also be challenging.
Going public is a significant step for companies to access new sources of funding and expand their business. It’s no easy feat, but it can be an excellent opportunity for companies to gain exposure and attract more investors. In this article, we’ll explore the pros and cons of going public and take a closer look at some of the most notable IPOs of 2020 that made headlines and shook up the market.
Notable IPOs of 2020
Snowflake
Snowflake debuted its stock shares on September 16, 2020. Offering 28 million shares. The shares opened at a price of $245 per share and closed at $253.93 per share. Snowflake raised about $3.4 billion from the IPO.
Snowflake is a cloud-based data warehousing company that allows businesses to store, manage, and analyze large amounts of data in a scalable and efficient way.
Unity Software
Unity went public on September 18, 2020, with an offering of 25 million shares. The shares opened at a price of $75 per share and closed at $68.35 per share. Unity would end up raising $1.3 billion from the IPO.
Unity Software is a company that provides a platform for creating and operating interactive, real-time 3D content.
DoorDash
DoorDash went public on December 9, 2020. The company opened with 33 million shares. The shares opened on the market at a price of $182 per share. And the shares had a solid performance on opening day with a closing price of $189.51 per share. The company raised $3.4 billion from the public offering.
DoorDash is a food delivery platform that allows customers to order food from their favorite restaurants and have it delivered to their doorsteps.
Airbnb
Airbnb debuted its stock shares on December 10, 2020. Offering 51.9 million shares at open. The shares opened on the market at a price of $146 per share and closed at $144.71 per share. IPO day and closed well above the opening price at $144.71 per share. Airbnb raised about $3.5 billion from the IPO.
Airbnb is an online marketplace that connects people who need a place to stay with those who are willing to rent out their homes or apartments.
Warner Music Group
Warner Music Group went public on June 3, 2020. With an offering of 77 million shares. The shares opened at a price of $27 per share. The stock had a positive reaction on its first day and closed at $30.12 per share. Warner Music Group would end up raising $1.9 billion from the IPO.
Warner Music Group is a music company that provides recorded music, music publishing, and artist services to customers worldwide.
Lemonade
Lemonade went public on July 1, 2020. The company offered 11 million shares which opened on the market at a price of $29 per share. And the shares exploded over 100% on opening day with a closing price of $69.41 per share. The company raised $319 million from the public offering.
Lemonade is a digital insurance company that offers homeowners, renters, and pet health insurance policies through an online platform.
Palantir Technologies
Palantir Technologies debuted its stock shares on September 30, 2020. Offering 257 million shares which opened on the market at a price of $10 per share. The shares closed on IPO day at $9.50 per share. Palantir Technologies raised about $1.7 billion from the IPO.
Palantir Technologies is a software company that specializes in data analysis and offers products for various industries including finance, healthcare, and government.
Vroom
Vroom went public on June 8, 2020. With an offering of 21.25 million shares at a price of $22 per share. The stock closed at $47.90 per share. Vroom would end up raising $468.7 million from the IPO.
Vroom is an online marketplace that sells used cars, offering consumers the ability to buy, sell, and trade-in cars through their platform.
Asana
Asana went public on September 30, 2020. The company priced its 28 million shares at a price of $21 per share. And the shares ended IPO day with a closing price of $28.80 per share. The company raised $598 million from the public offering.
Asana is a California-based software company that provides a web and mobile application designed to help teams organize, track, and manage their work tasks and projects.
Peloton Interactive
Peloton went public on September 26, 2019. With an offering of 40 million shares. The shares opened at a price of $29 per share. The shares went down on the first day and closed at $25.76 per share. Peloton would end up raising $1.16 billion from the IPO.
Peloton Interactive is an exercise equipment and media company that sells home fitness products, including stationary bicycles and treadmills, along with a subscription-based streaming service for fitness classes. Peloton exploded in popularity during COVID restrictions in 2020.
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 public markets.
The Pros and Cons of IPOs
On the pros side, going public can bring a level of credibility and prestige to a company’s name. By being listed on a major stock exchange, it can help attract new investors, customers, and business partners, as well as provide a way to raise more capital for expansion and innovation.
A major con of IPOs is the cost and complexity of the IPO process itself, which can be both time-consuming and expensive. Public companies also face greater scrutiny and regulation, as they are required to disclose financial information and meet reporting requirements to shareholders and regulatory bodies. Additionally, public companies may experience pressure from shareholders to prioritize short-term profits over long-term growth and innovation.
What happened to the stock market in 2020?
In 2020, the stock market experienced significant volatility due to the COVID-19 pandemic. The S&P 500 index experienced its fastest-ever decline into a bear market, and the Dow Jones Industrial Average also experienced significant declines. However, the market then rebounded and ended the year with gains with interest rates going extremely low.
The Federal Reserve took measures to lower interest rates in an effort to stimulate economic growth and provide support during COVID restrictions. The Federal Reserve reduced its benchmark interest rate to near zero and implemented various other measures to keep the financial system functioning and credit flowing. This led to lower interest rates across various financial products, including mortgages, car loans, and credit cards. The technology sector outperformed other sectors, with companies like Apple, Amazon, Microsoft, and Tesla contributing to the market’s overall gains. The pandemic also led to increased interest in certain sectors such as healthcare and technology, while other sectors like travel and energy experienced significant declines.
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 2020?
In 2020, there were 480 initial public offerings (IPOs) in the United States. This was a significant increase compared to the 232 IPOs in 2019. The surge in IPOs was largely driven by the strong performance of the stock market in the second half of 2020, as well as the increased interest in technology and healthcare companies.
Key takeaways
- Going public is a significant step for companies to access new sources of funding and expand their business.
- The most notable IPOs of 2020 include Snowflake, Unity Software, DoorDash, Airbnb, Warner Music Group, Lemonade, Palantir Technologies, Vroom, Asana, and Peloton Interactive.
- Snowflake raised about $3.4 billion from the IPO, while Airbnb raised about $3.5 billion, and DoorDash raised $3.4 billion.
- The advantages of going public include increased exposure and access to new sources of funding. The disadvantages include increased regulatory requirements, additional costs, and potential loss of control.
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
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.
