July 13 2011|08.00 AM UTC

Samantha Eckles

Top 5 IPOs

Category: Personal Finance, SRTags: , , , , ,


2011 seems to be the year of Internet companies going public. From LinkedIn to Groupon to Pandora, it seems like everyday a new startup is filing their SEC or setting a new record with their IPO. However, how are these Internet darlings stacking up against other companies who have gone public in the past? Here is a look at some of the priciest additions to the New York Stock Exchange.

LinkedIn

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The social networking giant that connects a hundred million employees and employers weighed in on the NYSE in May of 2011. While they raised an impressive $352.8 million, LinkedIn only comes in at number five for Internet IPOs. With $45 shares quickly jumping to $83 and ending at $92, it is speculated that LinkedIn’s success is a good predictor for other social media companies like Facebook and the even larger success they will experience in the future.

Google

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For Internet IPOs, it comes as no surprise that Google trumps most of them. In 2004, Google raised $1.7 billion. Since then, they have seen strong financial growth, including acquisitions of other popular Internet companies like Youtube and Blogger, and developed services like Google Maps that most of us cannot live without. Google’s influence doesn’t stop at the Internet though. They have also become involved in energy production by investing in two North Dakota wind farms in 2010 and invested $55 million in California wind farms in 2011

eBay

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When eBay first launched onto the market in 1998, they were at a market cap of $1.8 billion. In a mere two quarters, it went up to $16.6 billion, making it the fastest company to achieve 1000% growth. eBay ended 2010 worth an incredible $36.7 billion. Even more incredible is that when eBay announced their IPO, they hadn’t even figured out how to monetize the product yet.

Goldman Sachs

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While Google’s IPO is quite impressive for an Internet company, Goldman Sachs, one of the largest investment banks in the country, puts it to shame with $3.7 billion IPO in 1999. Founded in 1869, Goldman Sachs is a veritable indicator of the country’s financial well-being and a major contributor to wealth and securities management. In its role as an all around financial expert, Goldman Sachs also works with private equity deals as well as mergers and acquisition consulting.

Visa

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Topping the list for historic IPOs is the San Francisco based credit card company, Visa, at $17.9 billion in March of 2008. In the midst of an economic slowdown, Visa was one of only 22 companies to go public, giving it the moniker of an “oasis in the desert” Visa is the largest credit card company in the country and, according to one count, there are 500 million Visa cards floating around the United States alone. This is quite a remarkable feat considering that there are only 307 million Americans.

2011 is only half way done and there are sure to be more spectacular IPOs in the future. Be on the lookout for Groupon hitting the NYSE, which is predicted to come in at number three for Internet IPOs.

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{ 1 comment… read it below or add one }

Credit card apply online July 15, 2011 at 7:49 pm

It is difficult to achieve top valuations for IPOs when its whole market remains undervalued largely because of the political “discount” investors apply to the country [due to] perennial concerns over corruption.

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