In this article we are going to list the 15 biggest IPOs of 2020. Click to skip ahead and jump to the 5 Biggest IPOs of 2020.
Last year was undoubtedly a year full of uncertainties as we all tried to adjust to the new normal. With the World Health Organization declaring COVID-19 as a pandemic, many of our activities came to halt. This pandemic has affected everyone in the world in an unprecedented manner, directly or indirectly. Not only did COVID-19 have a serious implication on people’s health but it adversely affected the economy and businesses all over the world.
In this health and ultimately economic crisis many businesses stopped their operations and laid off people as they tried to navigate this unprecedented challenge. Although all the businesses were impacted by COVID-19, the traveling industry took the worse hit as global travel came to halt abruptly. Moreover, the hospitality sector suffered from the decline in tourism.
Having said that, this year redefined the role of leadership as many business leaders decided to bounce back and take this pandemic as an opportunity to become better and stronger. For instance, despite all the turbulence, many companies were brave enough to hold their ground and make the most of the available opportunities. For example, the list of 15 biggest public companies in the world heading into 2021 showcases that despite facing lockdown, 2020 was a successful year for many companies.
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Many companies also went public in 2020 and were highly successful, and able to raise billions of dollars. It was observed that unexpectedly the amount raised in 2020 was higher than in 2019. This is because in 2019 there were only 110 public offerings, whereas in 2020 there were 129 initial public offerings. One particular reason behind this is the fact that as the stock market started to perform better, more and more investors gained confidence.
Among all the companies, Doordash (DASH), Snowflake (SNOW), and Airbnb (ABNB) had the biggest IPOs (Initial public offerings) of 2020. Even though both DoorDash and Airbnb faced difficulties due to the worldwide lockdowns, they were able to raise over $3 billion. The fact that people are not able to step out of their homes was used as an opportunity by DoorDash to bloom its business. On the first day, the stocks of DoorDash surged 85 percent. DoorDash raised $3.4 Billion.
Juxtaposed to this, Airbnb became the largest tech IPO of 2020 as on the first day it stocked more than double. This was impressive as due to the collapsing of revenues, this company laid off 1,900 employees and took a loan of $2 billion. Later, Airbnb's valuation surged past $100 billion. Both Doordash and Airbnb used a hybrid auction model. This allowed the executives to solicit bids from investors before determining the price. As a result, there was no need for any discount as they were able to sell the shares based on the actual demand.
Moreover, Snowflake became the largest software IPO of 2020. On its first day, the stocks of Snowflake took a jump of 104 percent. The initial price of the stock was $120 but as demand grew, the price soon nearly doubled for the coveted stock.
One thing that needs to be highlighted is that the biggest IPO would have had been of Ant Group if it was not blocked by the government at the last minute. Ant Group was expected to raise around $37 billion. It was founded by the billionaire Jack Ma and the company aimed at offering the shares per $10.32 each. But at the last moment, the Chinese government ordered Ant Group to revamp their business. This indefinite suspension was two days before the scheduled offering and this led to a great business loss. For example, after this news, the shares of Alibaba, Ant’s parent company, tumbled more than 9%.
While this was a good year for many companies in terms of their IPOs, not every investor needs to jump on the bandwagon and do IPO investment. This is because in this volatile market due to the pandemic, it is better to be cautious. Having said that, the IPO market bounced back to a level that has not been observed since the dot-com boom, and therefore we are here to shed light on the biggest IPOs. So without further ado, let's take a look at the companies which actually emerged quite successful in 2020, starting with number 15:
15. Lemonade (NYSE:LMND)
Lemonade is an American insurance company that provides pet health, homeowners, and renters policies. It allows you to access insurance policies via desktop and mobile apps through chatbots. When it comes to its business model, Lemonade provides underwriting profits to nonprofits of the customer’ choice. Lemonade is backed by investors such as Aleph, XL, Seal Grusd, Thrive Capital, General Catalyst and Sequoia Capital, etc. In 2020, Lemonade gained more than 1 million active customers. Its IPO was $29/share and the market cap was $8,544 million. the amount it raised through the IPO was $319 million.
14. Lightspeed POS (LSPD)
LSPD ranks 14th in our list of the biggest IPOs of 2020. Lightspeed is an e-commerce software provider that is based in Montreal, Quebec, and Canada. This company was founded in 2005 by Dax DaSilva who is currently also the CEO of the company. Lightspeed has offices in Amsterdam, Montreal, Ghent, New York, and in many other parts of the world. Currently, it is offering services to more than 100,000 customers belonging to different sectors such as retail, hospitality, business, and restaurant. Its IPO was $30/share along with the market cap of $10,293 million. The total amount it raised through the IPO was $355 million.
13. C3.ai (NYSE: AI)
C3.ai is an AI software company that provides an accelerating digital transformation. This company provides comprehensive services to those who are interested in building enterprise-scale AI applications in an efficient and cost-effective manner. Their AI Suite supports the value chain in any industry and comes with prebuilt features such as energy management, fraud detection, supply network optimization, and predictive maintenance. In 202, it went public and its IPO was $42/share. The market cap was $12,200 million and it was able to raise $651 million through the IPO.
12. Ozon Holdings PLC (OZON)
OZON ranks 12th in our list of the biggest IPOs of 2020. Ozon Holdings PLC is one of the first e-commerce companies in Russia. It is also known as the Amazon of Russia. This company was established as an online bookstore in 1998 and by 2019 it became one of the three biggest online-retail services in Russia. Moreover, Forbes named this company as one of the top-5 most valuable Russian online companies in 2019. In 2020, the company went public and had an IPO of $30/share and its market cap was $9,319 million. The amount raised through the IPO was $990 million.
11. Li Auto (LI)
LI ranks 11th in our list of the biggest IPOs of 2020. Li Auto is a Chinese electric vehicle manufacturer that was founded in 2015. The founder and CEO of Li Auto is Li Xang. This company is backed by two of the largest consumer service applications in China, Meituan and Bytedance. What makes Li Auto distinct from other electric vehicles companies is the fact they have specialized in plug-in hybrid vehicles. Their vehicles can be powered by gasoline and electricity. In 2020, Li Auto went public and raised $1,092.5 million in the IPO with a market cap of $30,913 million.
10. GoodRx Holdings (NASDAQ: GDRX)
GDRX ranks 10th in our list of the biggest IPOs of 2020. GoodRX provides convenient and affordable healthcare. Their technology ensures that all the people in America, regardless of their socioeconomic background, have the knowledge and choices required to live a healthy life. Till now, GoodRx has saved up to consumers $20 billion and in 2011 it helped more than 18 million Americans by paying for their basic prescription. In 2020, GoodRx went public and its IPO was $33/share with a market cap of $17,063 million. the total amount it raised through the IPO was $1,140 million.
9. Unity Software (NYSE: U)
It is a game engine that was released in 2005 and by 2018 it was supporting more than 25 platforms. Unity Software provides three and two dimensional, virtual, and augmented reality games. It also offers stimulation and other experiences. This software is not just limited to the gaming industry but also has been adopted by others such as engineering, film, architecture, and construction. In 2020, unity software went public and its IPO was $52/share along with the market cap of $41,387 million. the total amount it raised through the IPO was $1,300 million.
8. Xpeng (XPEV)
XPEV ranks 8th in our list of the biggest IPOs of 2020. Xpeng is also known as Xiaopeng Motors. It is a Chinese electric vehicle manufacturer. The headquarter of this company is in Guangzhou and was founded in 2014. The production of its first model, the Xpeng G3 SUV, started in 2018. In 2020, this company went public and raised $1,500 million in the IPO. The market cap of Xpeng is $30,913 million.
7. Rocket Companies (NYSE: RKT)
RKT ranks 7th in our list of the biggest IPOs of 2020. Rocket Companies is a Detroit based holding company that was founded by Dan Gilbert. This company provides industry-leading real estate and mortgage and financial services. It focuses on empowering consumers and is considered to be America’s largest mortgage lender. Rocket Companies is indeed an ecosystem of businesses that provides new opportunities to the client. When it comes to home financing, it consists of Rocket Mortgage, Amrock, Amrock Title Insurance Company, Nexys Technologies, Lendesk, and Edison Financial. Under the umbrella of Home Sale & Search, it has Rocket Homes, ForSaleByOwner.com. It also has a wide range of offerings in the Media and Client Service & Technology Solutions category. In 2020, Rocket Companies went public and raised $1,800 million through the IPO. The market capitalization of Rocket Companies is $39,788 million.
6. Warner Music Group (NASDAQ:WMG)
Warner Music Group is an American multinational entertainment and record label conglomerate that was founded in 1958. The headquarter of this company is in New York and is considered to be one of the third largest recording companies in the world. In 2020, it went public and raised $1,925 million through the IPO. The market cap of Warner Music Group is $19,926 million.
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Disclosure: No position. 15 biggest IPOs of 2020 is originally published at Insider Monkey.