Every fledgling business owner hopes that their initial public offering (IPO) would be successful. A successful IPO means that investors and the public have embraced the brand and that the company would be flushed with cash for expansion and new infrastructure.
Uber's recent $8 million IPO, while impressive, failed to meet the company's then-$100 billion valuation.
Compared to other large IPOs like Facebook's $16 billion 2012 offering, Visa's 2008 $18 billion offering, and Alibaba's 2014 $25 billion IPO, Uber neglected to adequately translate its popularity into investors' confidence.
An IPO—the first public offering of stock once a company transitions to a publicly traded corporation—largely hinges on how large institutional investors feel about the company.
This may reflect management strength, industry competition, recent mergers in the field, and the general buzz both inside and outside the company.
While a strong IPO may suggest that a business has the right elements to succeed, it is no guarantee. In an analysis of more than 7,000 IPOs from 1975 to 2011, more than 60% had a negative absolute return after five years in the secondary market.
From 2000 to 2016, it's the absolute and excess six months returns that have been largely negative.
Stacker has looked at the data for IPOs from the last five calendar years—June 2014 to June 2019—to determine which IPOs had the best first-day returns. We gathered data from IPOScoop.com and the Warrington College of Business at the University of Florida for our analysis. Our analysis will consider the initial public offering—or the price the company sold its shares to investors—and not the opening price, which is the selling price the stock had on the market when first publicly introduced.
As IPO data tends to be proprietary, this list is inclusive, but—despite our best efforts—not exhaustive.
Cramer dives into the stocks of CareDx, Orbcomm, and Elastic
This list is also exclusive to IPOs launched in the United States. As stated above, a strong first-day return is unlikely to speak of the current state of the company, so we will also look at where the companies stand as of the writing of this article.
Keep reading to find out which fast-food restaurant had a top IPO.
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