IPOs of large companies are usually a good opportunity for investors to position themselves early in a high-growth company. If the circumstances are right, there is no better choice than the IPO to create new millionaires overnight.
An initial public offering (IPO) is when a company goes public starts to sell its shares in the open market for the first time. An initial public offering is one of the few times a company will sell its shares. After the shares are initially issued, they are traded among investors in the secondary market, which is called the stock exchange. An IPO’s main purpose is to raise capital for the shares issued by the company.
In this article, we’ll talk about the top 10 of the world’s largest IPOs. There are several different companies on the list, including four financial services providers, two telecommunication companies, two Internet-based “new technology” companies, an energy provider and an automobile manufacturer. Asia dominates the list: 3 Chinese companies hold the first three largest IPOs of all time.
1. Alibaba Group Holding Ltd. ($25 billion)
Alibaba Group Holding Ltd. (NYSE: BABA), based in Hangzhou, holds the title of the first-largest IPO of all time. This e-commerce giant was unknown outside China by the time it became public on September 18, 2014. When Jack Ma, the founder of Alibaba, failed to reach an agreement with the stock exchange of Hong Kong, he took the company’s initial public offering over New York. Alibaba initially placed 368.1 million shares at 68 US dollars with investors, initially raising $21.77 billion.
Then, right after four days, underwriters exercised the so-called “greenshoe” option to bring more shares on the market, which allowed the company to increase its IPO to up to $25 billion. Alibaba Group chose to list on the NYSE for its launch rather NASDAQ, and the Credit Suisse underwritten its IPO. The group owns large e-commerce brands such as Alibaba.com, Aliexpress.com, Taobao.com, and Tmall.com.
2. Agricultural Bank of China Ltd. ($22.1 billion)
A Chinese company as well holds the title of the second-largest IPO. AgBank became public on July 7, 2010, at a whopping $19.2 billion. Then, it had increased its IPO to reach up to $22.1 billion. In addition, Agricultural Bank of China Ltd. is a part of the “Big Four” banks in China.
3. Industrial and Commercial Bank of China ($21.9 billion)
ICBC is one of the “Big Four” as well and holds the title of the third-largest IPO of all time. It became public on October 20, 2006, raising $19.1 billion. A year later, the Chinese bank succeeded in increasing the IPO to $21.9 billion due to an over allotment option.
4. General Motors Company ($20.1 billion)
General Motors is a multinational automobile manufacturer. It was affected by the global financial crisis in 2008 during the company’s 100th anniversary. The US federal government, which intervened with $50 billion, saved the company. The American automobile giant November 16,2010 after recovering from bankruptcy. Only one year and a half later, GM succeeded in generating an IPO with a total of $20.1 billion; one of the fastest and most successful company profits in history. At present, GM owns Buick, Cadillac, GMC, and Chevrolet.
5. NTT DOCOMO Inc. ($18.4 billion)
Japan’s largest mobile communications group, NTT DOCOMO, went public in 1998 and generated revenues of USD £18.4 billion. Headquartered in Tokyo, the company is a subsidiary of Nippon Telegraph and Telephone Corporation (NTT) and serves more than 62 million mobile customers. This giant Japanese communication company was underwritten by Golden Sachs Asia. Also, it had been on the NYSE list until April 13, 2018, when it officially delisted its American Depositary Shares (ADS).
6. Visa Inc. ($17.9 billion)
In March 2008, the US credit and debit card provider Visa (NYSE: V) ventured into the stock market. The company placed 406 million shares at $44 with investors and private investors, initially raising almost $17.9 billion. Later, further 40.6 million shares were issued, bringing Visa’s total revenues to $19.7 billion with a 219% return after the first year. Today Visa has an annual turnover of more than US $12 billion, and the Visa share price is well over the $200.
7. American International Assurance Group Ltd. ($17.8 billion)
Asian AIG’s subsidiary, American International Assurance (OTC: AAIGF) went public in Hong Kong on October 21, 2010. AIA raised more than $17.8 billion making it the largest publicly, independently pan-Asian group of life insurance to be listed.
8. Enel S.p.A ($17.4 billion)
The Italian energy supplier Enel S.p.A (OTC: ENLAY) became public on November 1, 1999, and raised roughly $17.4 billion. In 2010, the green power subsidiary Enel Green Power (EGP) went public, raising $3.8 billion. Enel has 72 million end users worldwide and works in 34 countries. This Italian firm competes in the electric and gas market in the whole Europe, North America, as well as in South America.
9. Facebook ($16 billion)
In May 2012, Facebook made the history: With an IPO volume of $16 billion, it was the largest IPO of an Internet company at that time. The shares were placed at $38, but the euphoria quickly faded. Its debut was riddled with questionable accusations of sharing information and trading issues. Investors who had subscribed sat on losses of up to 50% in the first few months. Only then, Facebook succeeded in monetizing its mobile users more effectively, and the Facebook share recovered again. As of April 2019, Facebook has 1.56 billion daily active users on average.
10. Deutsche Telekom AG ($13 billion)
Deutsche Telekom AG went public on November 17, 1996, raising over $13 billion, but the price quickly plunged in a straight line after it was issued. At the time, investors were worried about their heavy burden of debt, but Deutsche Telekom AG soon continued. Today, 68% are owned by public investors, and the state of Germany holds an additional 32% of the property. This German communications company owns T-Systems and T-Mobile. It is estimated that it has more than 156 million mobile customers with 29 million fixed lines of network.