The coronavirus almost completely shut down the IPO market in 2020, crashing the stock market with April and May being the slowest public offering run since 2009.
The crash also dampened the hopes of IPO hopefuls such as DoorDash, Robinhood, and Airbnb. Although a shaky market typically closes the window for new capital, especially for marginal companies, companies that went public seem to have had a bumper one, at least for tech companies.
The tech market has been hot, and IPO sponsors are out to take advantage of the investors’ increasing appetite.
With that being said, let’s take a look at companies that recently raised money through an IPO. These companies went public as recent as 2019 and 2020.
They offer cloud-based data storage and analytics service to corporate users to store and analyze data using cloud-based hardware and software. Snowflake became the biggest software IPO ever, getting close to $3.4 billion and being valued at $33.2 billion before it started trading in the public markets. The company saw its stock rise to 104%, opening at $245/share, close to 112% above its Initial Public Offering.
- IPO price: $120
- IPO date: Sept. 16, 2020
- Last private valuation: $12.4 billion
- IPO valuation: $33.2 billion
Vroom is based in New York City. They are a used car retailer and an e-commerce company that allows customers to buy, sell, and finance cars online. They went public in 2020 and closed out their first day of trading with its stocks more than double of its Initial Public Offering. They increased their price range from $15 and $17 to $18 and $20 and ended pricing its shares at $22. And they still closed as high as $47.90 per share.
- IPO price: $22
- IPO date: June 8, 2020
- Last private valuation: $1.45 billion
- IPO valuation: $2.5 billion
SmileDirectClub is a teledentistry company that produces 3D-printed clear aligners. They are a major competitor of traditional braces producers and other clear alignment companies such as Invisalign. The DIY teeth straightening company went public in September 2019 with its IPO set at $23. But the high price had its consequences, and after one week of trading on the public markets, the company’s stock still didn’t hit $23. The company’s shares closed at $16.67 on the first day of trading.
- IPO price: $23 per share
- IPO date: September 12, 2019
- Initial post-IPO arc: Down
- IPO valuation: $8.9 billion
Through its mobile app, Lyft operates vehicle hiring and food delivery services. They are based in San Francisco and operates in 644 cities in the US and 12 cities in Canada. Beating Uber to the public market, Lyft saw significant growth, along with big losses to match. The pricing run was strong, and the company priced at the top of its raised range. With that, Lyft opened up more than $10 over its IPO price. Everything looked well until their stock began to drift down.
- IPO price: $72 per share
- IPO date: March 29, 2019
- IPO valuation: $24 billion
They are a subscription-based service that sells access to its database of information about business people and companies to sales, marketing, and recruiting professionals. When ZoomInfo launched its IPO, it was a big deal. And the company was well received by public investors, even when the U.S entered a recession due to the coronavirus. On the first day of trading, its stock price surged, closing almost 62% above its IPO price. The company was able to raise $935 million across 44 million shares in its offering and trades under the ‘ZI’ ticker.
- IPO price: $21
- IPO date: June 3, 2020
- Last private valuation: Unknown
- IPO valuation: $8.2 billion
The image-sharing platform was created to allow saving and information discovery on the web using images, animated GIFs, and videos in the form of pinboards. The business went public in April 2019, and the pricing was sort of a disappointment for investors hoping that it would price up from its final private price. However, Pinterest’s stock still climbed. It’s now worth more than its initial offering.
- IPO price: $19 per share
- IPO date: April 18, 2019
- IPO valuation: $10 billion (according to CNBC)
Uber offers vehicle hire, food delivery, package delivery, couriers, and freight transportation services. The Uber IPO was big in both Silicon Valley and Wall Street. The sales made a dent and both coasts, as their shares slipped after their Initial Offering during their initial trading session. They fell even further in the subsequent session. The company’s combined slow growth and persistent losses were too much for public investors to agree with the price of the IPO.
- IPO price: $45 per share
- IPO date: May 10, 2019
- Initial post-IPO arc: Down
- IPO valuation: $82.4 billion
The risk associated with the IPO market is in the general weakness of the stock market. Funding for IPOs is some of the first to dry up as the market gets frothy; therefore, IPOs depends on a stable market. However, the seven companies discussed above went public in 2019 and 2020 and raised enough money through an IPO.