AnalysisEconomy

Companies That Had Their IPO in 1997

You must have been curious to know the list of companies that had their IPO in 1997. Well, this article got you covered.

Delivering on a promise is difficult, and doing it consistently necessitates excellence on all fronts.

Companies tout their financial strength, balance sheet solidity, market opportunity, strong competitive positioning, efficient management team, a viable strategy,

They also need resilience to weather any kind of adverse events, among other things, when they offer their shares to the public in the form of an IPO.

Investors will rush to the companies in droves if they warm up to the companies and the promises they make, and the IPO will be a massive success.

Before we look at the names of companies that had their IPO in 1997, let’s talk about the significance of IPO.

Importance of Initial Public Offering (IPO)

A corporation is deemed private before it goes public. The company has expanded with a limited number of stockholders as a pre-IPO private company.

This comprises early investors such as the founders, family, and friends, as well as professional investors such as venture capitalists and angel investors.

An initial public offering (IPO) is a significant milestone for a company since it allows it to raise significant funds. This increases the company’s capacity to expand and grow.

The enhanced transparency and legitimacy of its stock listing may also help it acquire better terms when seeking borrowed capital.

When a firm believes it is mature enough for the rigors of SEC laws, as well as the rewards and responsibilities that come with being a public company, it will begin to market its interest in going public.

The Unicorn Status

This stage of development usually occurs when a company has reached a private valuation of $1 billion or more, commonly known as unicorn status.

However, depending on market competition and their capacity to meet listing standards, private companies with good fundamentals and proven profitability potential can potentially qualify for an IPO.

Underwriting due diligence is being used to price a company’s IPO shares.

When a corporation goes public, private share ownership transforms into public ownership, and existing private shareholders’ shares are valued at the public market price.

Special provisions for private to public share ownership can be included in share underwriting.

Having established the importance of IPO, let’s now look at the list of companies that had their IPO in 1997.

Companies that Had their IPO in 1997

In the District of Columbia, Maryland, and Virginia, initial public offerings garnered more than $3.5 billion this year.

This allows 40 area companies to develop new technologies, unite fragmented industries, and recapitalize old enterprises.

Technology companies, particularly computer and communications specialists, made up more than half of the area corporations selling the stock for the first time.

One of the driving drivers of the region’s economy is these companies’ ability to harness the hungry IPO market.

Regional tech firms are creating jobs faster than they can find people to fill them, while also collecting riches for Washington area investors, thanks to the flood of cash from Wall Street.

Eight of the top ten performing areas IPOs for the year were tech businesses, headed by Ciena Corp. of Savage, Md., whose stock is now trading at 2 1/2 times its February IPO price of $23 per share.

In 1997, the market for initial public offerings was brisk, and most companies who took the plunge to go public saw significant returns, powered by a stock market that spent most of the year surging.

Below is the list of companies that had their IPO in 1997:

Amazon com., Inc.

  • Date of offer: May 15, 1997
  • Number of shares offered: 3 million
  • Offer price: $18
  • Gross proceeds: $54 million
  • Gains/Loss: +123,968%

C.H. Robinson Worldwide, Inc.  

  • Date of offer: October 15, 1997
  • No. of shares offered: 10.58 million
  • Offer price: $18
  • Gross proceeds: +$190 million
  • Gains/Loss: 1,710%

Children’s Place Inc. 

  • Date of offer: September 19, 1997
  • No. of shares offered: 4 million
  • Offer price: $14
  • Gross proceeds: $56 million
  • Gains/Loss: +203% 

Ralph Lauren Corp 

  • Date of offer: June 12, 1997
  • No. of shares offered: 29.5 million
  • Offer price: $26 Gross proceeds: $767 million
  • Gains/Loss: +184%

TD Ameritrade Holding Corp 

  • Date of offer: March 4, 1997
  • No. of shares offered: 2.35 million 
  • Offer price: $15
  • Gross proceeds: $35.25 million
  • Gains/Loss: Charles Schwab completed a buyout of TD Ameritrade in 2019.
  • The final close price of TD was $39.97, good for a 3,093% increase from its IPO price. 

Cerus Corporation 

  • Date of offer: January 31, 1997
  • No. of shares offered: 2 million
  • Offer price: $12
  • Gross proceeds: $24 million
  • Gains/Loss: (-59%)                                                                                                                                      

Casella Waste Systems Inc.

  • Date of offer: October 29, 1997
  • No. of shares offered: 4 million
  • Offer price: $18
  • Gross proceeds: $72 million
  • Gains/Loss: 211%

Rambus Inc.

  • Date of offer: May 14, 1997
  • No. of shares offered: 2.75 million
  • Offer price: $12
  • Gross proceeds: $33 million
  • Gains/Loss: 209% 

IPOs in 1987 and Now

A blazing bull market came to an unexpected halt ten years ago this month. This ended two consecutive years of record IPO activity and virtually devastated the investment banking community’s capacity to bring new firms public.

The 10-year anniversary of the stock-market crisis on Oct. 19, 1987, hasn’t spooked the initial-public-offering market, with stocks climbing inexorably to all-time highs.

However, comparing 1997 to 1987 reveals a market that is better equipped to handle IPOs with larger valuations, as well as an IPO paradigm that is becoming more global.

“Today’s IPO market is much more of a worldwide marketplace,” according to Brian Hehir, Merrill Lynch’s co-head of Global Equity Capital Markets.

According to market tracker Securities Data Corp, international deals made up 25% of the total U.S. IPO market this year, up from 14.5 percent ten years earlier.

IPO Today

According to Hehir, the privatization of state-owned telephone monopolies has provided a large amount of opportunity for bankers this year, if not the majority of it.

Some of the year’s major international telecom offerings in the pipeline, such as Portugal Telecom, China Telecom, and France Telecom, are led by Merrill Lynch.

The IPO market has become an attractive source of finance for U.S.-based telecom-related enterprises due to the deregulation of the local and long-distance sectors.

This is one of the most active sectors in the initial public offering market. Sixteen recent telecommunications IPOs have garnered $1.5 billion, with another 13 slated to raise more than $8 billion.

In 1987, however, only seven telecom businesses went public, raising a total of less than $640 million. The fundamental reconfiguration of the real estate industry has made real estate investment trusts (REITs) more appealing than ever as IPOs.

Some of the  best-performing IPOs in 1987 include:

  • Fastenal Corp. (FAST): offered at $9 in August 1987, and up 7,041 percent since then. 
  • HealthCare Compare Corp. (HCCC): offered at $11 in May 1987, and up 2,204 percent today. 
  • Charles Schwab Corp. (SCH): offered at $16.50 in September 1987. Up 2,147 percent over the past 10 years.  
  • Agouron Pharmaceuticals Inc. (AGPH): offered at $10 in March 1987. Up 1,940 percent today. 

Conclusion

The importance of IPO can no doubt be overemphasized. Companies that took the bull by the horn and went public are reaping the rewards of that decisions today.

But if there’s one thing you must know, the company has to experience a certain growth before launching to the public, the maturity will help it brace for any challenges that might come.

FAQs

If it manages to sway the market and rake in profits, you would gain from its success too. IPO investments are equity investments.

So, they have the potential to bring in big returns in the long term. The corpus earned can help you to fulfill long-term financial goals like retirement or buying a house.

On November 10, 2021, electric vehicles manufacturer Rivian Automotive raised 13.7 billion U.S. dollars on its public debut on Wall Street, making it the largest initial public offering (IPO) in the United States in 2020

The Initial Public Offer or IPO can help you to earn a profit in a short time. The IPO is a process where a private company offers its shares to the general public for the first time.

Investing in the IPO of a company that has the potential to grow into a more prominent company can make you rich.

The IPO investment is a high-risk reward investment option.

Amazon

Ralph Lauren Corp

Cerus Corporation

Lack of planning or unrealistic expectations on the part of the executives

The Securities Exchange Act of 1934 as amended.

Alibaba Group Holdings, with an IPO of nearly 22 billion dollars, it remains the largest public offering in the US

Although you can make money from an IPO, it is not a guaranteed money-maker for companies

Investors become active shareholders of the company after receiving IPO shares. Investors have the right to earn dividends and bonus stock if the company offers them in the future, according to funds invested in IPOs.

Heartz Team.

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