Predicting an IPO’s success can be tricky, as no one can guarantee a surefire return on investment. To best understand how to reap long-term profits from IPOs, it’s helpful to look back and analyze some of the biggest placements in the last decade and their current outcomes. By studying past performance data, you can better anticipate future successes or pitfalls when investing in initial public offerings.
Saudi Aramco Broke the Record
Recently, the world witnessed history in motion, with Saudi Aramco becoming the biggest initial public offering to date. On December 11th, 2019, this oil giant raised $25.6 billion, which was later increased by 450 million shares through a “greenshoe option,” bringing its success up to a remarkable amount of $29.4 billion. The first exchange rate was 35.20 riyals. At first, the share price surged upward; those who seized this opportunity reaped immense profits. Unfortunately, it eventually started to decline slightly.
Alibaba Is the Second Largest IPOs
Until recently, Alibaba held the distinguished title of largest IPO in history. On September 19th, 2014, it raised a record-breaking $21.7 billion, with its issue price initially set at 68 USD per share. Fast forward to the present day, and those same shares now have an impressive value that has skyrocketed by 66.50% – currently priced at 113.22 USD on the NYSE! Even Amazon‘s competition can’t compete with how far Alibaba’s stocks have come since then!
Softbank Became Japan’s Biggest IPOs
In 2018, the Japanese telecommunications and media group Softbank sought to list on the Tokyo Stock Exchange. The IPO raised a volume equivalent to 21.345 billion US dollars – the largest IPO in Japan to date. The offering was priced at 1,500 yen, with the initial price being 1,463 yen. Since then, the paper has been able to beat its issue price at times.
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