Companies That Had Their IPO in 1968: A Look Back in Time

 

Category	Details
Number of companies that went public	Approximately 368
Notable companies that went public	Pennzoil Company, Metaframe Corporation, Codex Corporation, Allegheny Power System, Inc., Centex Corporation, White Shield Oil and Gas Corporation, Data General Corporation, Scientific-Atlanta (Now part of Cisco)
Number of companies that have been acquired	Several, including Scientific-Atlanta
Largest company that went public	Pennzoil Company

In 1968, something special was happening in America. The stock market was buzzing, and lots of companies were going public. It was a time of excitement and change. I think people were hopeful about the future, even though there were some tough events happening too. Let’s look at some companies that had their IPO in 1968 and what they did.

Major World Events That Happened in 1968 That Affected the Stock Markets

1. Tet Offensive (January 30)

The Tet Offensive was a surprise attack during the Vietnam War. On January 30, 1968, North Vietnam and the VietCong launched strikes across South Vietnam. This was shocking for many Americans.

• People thought the war was going to end soon, but this news changed their minds.
• As the protests grew, many people felt uneasy.
• Investor confidence started to waver. This led to ups and downs in the stock market.

The Tet Offensive was a turning point. It made many Americans question their support for the war. This uncertainty rippled through the economy. Investors were nervous, and that can affect the stock market. When people are worried, they are less likely to buy stocks.

2. Assassination of Martin Luther King Jr. (April 4)

Source: Real Stories

On April 4, 1968, Martin Luther King Jr. was assassinated. This event sent shockwaves across the country.

• Riots erupted in over 100 cities.
• People felt scared and worried about safety.
• The unrest made investors uneasy about the stock market.

The death of King was a huge loss for many. He was a leader for civil rights and peace. His assassination led to protests and riots, which made many people anxious. This anxiety affected how investors felt about their money. When people are scared, they often pull back from investing. The stock market felt this fear and reacted accordingly.

3. Assassination of Robert F. Kennedy (June 5)

Just two months after King’s death, Robert F. Kennedy was assassinated on June 5, 1968. He was a well-known figure and a candidate for president (1).

• His death added more uncertainty to the already tense political climate.
• Many people felt anxious about the future.
• Investors were worried about what this could mean for the country and the economy.

Kennedy’s assassination shook the nation. His vision for America inspired many. But his death left people feeling lost. Without strong leaders, investors worried about the direction of the country. This anxiety often leads to cautious investing. When uncertainty looms, the stock market can react negatively.

4. Political Conventions and Protests

The Democratic National Convention in Chicago took place in August 1968. It was a time of protests against the Vietnam War.

• The convention was filled with chaos and division.
• Many people were unhappy with how the war was being handled.
• Investors were concerned about the future of the country.

The protests showed just how divided the nation was. Many Americans were tired of the war and wanted change. This unrest made investors think twice about their decisions. When people are divided, it can lead to uncertainty in the stock market. The chaos at the convention was a clear sign that the country was not in a stable place.

5. Economic Conditions

In 1968, the economy was a mix of strong growth and rising prices. The Consumer Price Index reached 4.7% by the end of the year (2).

• Prices were climbing, which made people worried about inflation.
• Even with these challenges, the stock market had a decent return of about 11%.
• Investors were still optimistic despite the rising prices.

The economy was doing well in some ways. Jobs were plentiful, and many people were earning more. But rising prices made it hard for families to afford things. This mix of positive and negative made investors feel unsure. Some chose to stay in the market, while others pulled back. The stock market was a reflection of these mixed feelings.

6. NYSE Paperwork Crisis

In 1968, the New York Stock Exchange faced a significant challenge. There was a big increase in trading, which led to a “paperwork crisis.”

• The NYSE had to close every Wednesday from June to December.
• This closure was to deal with all the unprocessed transactions.
• It was a tough time for the stock market and investors.

The increase in trading meant that the NYSE was overwhelmed. They could not keep up with all the paperwork. This crisis added more stress to an already shaky market. Investors needed quick access to their trades. When the market is not functioning properly, it can lead to more uncertainty. This uncertainty can affect how people feel about investing their money.

Market Reactions

Despite all the chaos in 1968, the stock market managed to perform fairly well. The S&P 500 index went up about 15% from March through December.

• By the end of the year, the total return was around 11%.
• This was a little better than usual, showing that investors were finding ways to stay strong.
• Even with protests and political unrest, people still believed in the market.

Investors showed resilience despite the challenges. They found ways to stay positive and invested in the market. It shows that even in hard times, people can adapt and find opportunities. The stock market often reflects the overall mood of the country. If people are hopeful, the market can still thrive, even during difficult times.

Key Insights of IPOs in 1968

Credits: pexels.com (Photo by: Mikhail Nilov)

1. Economic Climate

In 1968, the U.S. economy was on the rise. Many people felt hopeful about their money. However, there was a problem: inflation. Inflation means that prices for things were going up. This made some investors a bit nervous. But even with inflation, many people wanted to invest. They were looking for new chances to make money.

• Companies saw this as a great time to go public.
• Going public means selling shares of the company to the public for the first time.
• Investors were eager to buy these shares, hoping to earn big returns.

The mix of growth and inflation created a buzzing environment. Companies were excited to join the stock market. Investors were ready to jump in, believing they could find golden opportunities.

2. IPO Statistics

The number of Initial Public Offerings (IPOs) in 1968 was impressive. A total of 368 companies went public that year. This was a significant increase compared to previous years. It showed that many companies were confident about their prospects.

• The average return on the first day of trading was around 55.9%.
• This means that if someone bought shares on the first day, they could expect to see their investment grow quickly.

Investors were thrilled. They lined up to buy shares, hoping to get in on the action. The excitement made the stock market feel alive and full of possibilities. Investors wanted to be part of the next big success story.

3. Technology Boom

The technology sector was booming in 1968. Many new tech companies decided to go public. Investors were very interested in these so-called “glamour stocks.”

• Companies in computing and electronics were especially popular.
• This was part of a bigger trend.

Investors saw tech as the future. They wanted to be part of this change. Venture capital also started to grow. This means that there were more professionals managing money for new companies. Investors believed that technology would change the world, and they wanted to invest in that dream.

4. Speculative Environment

The stock market in 1968 was full of excitement. Investors were willing to take risks. They bought shares at high prices, thinking they would make a lot of money later.

• Many IPOs saw their prices jump quickly after going public.
• This created a sense of urgency among investors.

People felt that taking risks was worth it. They were hopeful about the returns they could get. The market buzz made everyone feel like they could strike gold. This excitement led to more companies wanting to go public, hoping to take advantage of the investor eagerness.

5. Cyclic Nature of IPOs

The IPO market is known for its ups and downs. Research shows that when the economy is doing well, more companies want to go public. In 1968, the hot market conditions attracted many companies.

• Companies were eager to take advantage of investor excitement.
• They wanted to join the fun and raise money for their growth.

This cycle of going public usually follows the economy. When things are good, IPOs increase. When times are tough, companies may wait. In 1968, the combination of a growing economy and investor interest created a perfect storm for IPOs. Companies were ready to take the leap into the stock market.

Companies That Had Their IPO in 1968

Credits: pexels.com (Photo by: Dylan Leagh)

1. Pennzoil Company

• Industry: Oil and Gas
• Founded: 1889
• IPO Date: 1968

Pennzoil Company is a big name in the oil and gas world. It started way back in 1889 and became famous for its oil exploration and motor oil refining. What does that mean? Well, they look for oil deep in the ground and make oil that people use in their cars.

When Pennzoil went public in 1968, it opened up new chances for the company. This means people could buy shares of Pennzoil. It was a way for the company to get money to grow. With this money, they could explore more places for oil and improve their products.

People loved their motor oil. It helped engines run smoothly. Pennzoil’s products were trusted by many drivers. They made oil that kept cars running longer. Today, Pennzoil is still a popular choice for car owners.

Some key points about Pennzoil:

• They focus on oil exploration.
• Their motor oil is known for quality.
• They have a long history in the industry.

2. Metaframe Corporation

• Industry: Consumer Goods (Aquariums and Pet Supplies)
• Founded: Early 20th century
• IPO Date: 1968

Metaframe Corporation made its mark in the world of pet supplies. Founded in the early 1900s, this company focused on making aquariums and supplies for pets. With more people getting pets in the 1960s, Metaframe saw a big chance to grow.

In 1968, Metaframe went public. This move allowed them to get more money to create better products. They made aquariums that were not only functional but also beautiful. They wanted pet owners to enjoy their fish and other pets.

Metaframe also produced many supplies. This included fish food, filters, and decorations for aquariums. They aimed to make it easy for pet owners to take care of their pets.

Key points to know about Metaframe:

• They specialized in aquariums and pet supplies.
• They went public in 1968 to expand their business.
• They helped many people enjoy pet ownership.

3. Codex Corporation

• Industry: Technology (Data Communications)
• Founded: 1962
• IPO Date: 1968

Codex Corporation was a game changer in technology. Founded in 1962, Codex worked with data communication. They helped computers talk to each other. This was very important as computers were becoming more popular.

In 1968, Codex had its IPO, allowing people to invest in the company. This was a big step for Codex. They used the money to create modems, which helped computers connect over long distances.

How did this help? Before modems, sharing data was hard. With their technology, companies could send information quickly and easily. Codex played a big role in shaping how we use computers today.

Some important facts about Codex:

• They were pioneers in data communication.
• Their modems made it easier for computers to connect.
• They went public in 1968 for better funding.

4. Allegheny Power System, Inc.

• Industry: Utilities
• Founded: 1925
• IPO Date: 1968

Allegheny Power System, Inc. provided electrical power to many areas in the U.S. Founded in 1925, the company focused on delivering energy to homes and businesses.

When they had their IPO in 1968, it was a way to raise funds for expansion. More money meant they could build new power plants and improve their services.

People rely on electricity for many things. Allegheny Power System made sure they had the power they needed. They worked hard to provide reliable, safe electricity.

Here are some key points about Allegheny Power System:

• They provided electrical power to many regions.
• Their IPO in 1968 helped them grow.
• They focused on reliability and safety in energy delivery.

5. Centex Corporation

• Industry: Real Estate and Construction
• Founded: 1950
• IPO Date: 1968

Centex Corporation was involved in real estate and construction. Founded in 1950, they saw a big opportunity during the housing boom after World War II. Many people wanted new homes, and Centex was there to help.

In 1968, Centex went public. This decision allowed them to raise money for more construction projects. They built both homes and commercial buildings.

Their focus was on quality. Centex wanted to create spaces that people would love. They worked on many big projects that helped communities grow.

Key points about Centex Corporation:

• They focused on real estate and construction.
• Their IPO in 1968 helped them take on more projects.
• They aimed for quality in every building.

6. White Shield Oil and Gas Corporation

• Industry: Oil and Gas
• Founded: Mid-20th century
• IPO Date: 1968

White Shield Oil and Gas Corporation specialized in oil exploration. Founded in the mid-20th century, they entered a competitive market.

In 1968, White Shield had its IPO. This move provided them with the funds needed to expand their oil production. They focused on finding new oil sources and increasing their output.

Their goal was to meet the growing demand for energy. With more people using oil, White Shield aimed to keep up. They worked hard to ensure they could provide oil for many needs.

Key points to remember about White Shield:

• They specialized in oil exploration and production.
• Their IPO in 1968 helped them grow.
• They focused on meeting energy demands.

7. Data General Corporation

• Industry: Technology (Computing)
• Founded: 1968
• IPO Date: Late 1968

Data General Corporation was a new player in the tech field. Founded in 1968, they created minicomputers. These computers were smaller and more affordable than the big mainframes of the time.

When Data General went public later that year, they opened the door for more investment. This funding allowed them to improve their products and reach more customers.

Their minicomputers were a hit. They provided businesses with a cost-effective way to use computing power. Many companies began using Data General’s technology to improve their operations.

Key points about Data General Corporation:

• They focused on minicomputers for businesses.
• Their IPO in 1968 helped them grow quickly.
• They provided affordable computing solutions.

8. Scientific-Atlanta (Now Part of Cisco Systems)

• Industry: Telecommunications
• Founded: 1951
• IPO Date: 1968

Scientific-Atlanta started in 1951 and became important in telecommunications. They worked on technologies that helped with satellite communications and networking.

Their IPO in 1968 was a big step for the company. It allowed them to gather funds for new projects and innovations. With this money, they pushed forward in satellite technology.

Scientific-Atlanta played a key role in making communication easier. They helped people connect through various channels, making it easier to share information.

Key points to know about Scientific-Atlanta:

• They specialized in telecommunications and satellite technology.
• Their IPO in 1968 boosted their growth.
• They helped improve communication systems.

Conclusion

As we wrap up this look back at 1968, it’s clear that it was a year full of significant IPO activity and important events. The companies that went public that year shaped their industries, and their stories added to the rich tapestry of the stock market. The events of 1968 reflected a complex relationship between growth, optimism, and challenges, reminding us of how history can influence the economy.

FAQ

How did the stock prices and market cap of 1968 IPOs perform during the financial crisis compared to other public companies?

Many 1968 IPO companies weathered multiple financial crises, experiencing a roller coaster of share price fluctuations. During economic downturns, some maintained remarkable growth while others struggled. Companies with diverse customer base and strong market share typically showed more resilience in capital markets.

What role did investment banks like Goldman Sachs, JPMorgan Chase, and Credit Suisse play in 1968 IPOs?

Investment banks managed the public offering process, determining the offering price and IPO price range. They helped companies navigate capital markets during their day of trading. These third quarter IPOs marked an important era for Wall Street, setting precedents for future successful IPOs.

How did tech stocks and medical devices companies from 1968 compare to later tech IPOs of personal computers in growth trajectory?

Early tech and medical device companies that went public in 1968 laid groundwork for future tech stocks. While their initial market cap seemed modest compared to late 1990s IPOs, many achieved long term success. Their growth patterns differed from United States tech companies of the personal computer era.

Which 1968 IPOs evolved into world’s largest companies, like today’s Berkshire Hathaway?

Several 1968 IPOs grew from small cap stocks into significant players. Some became holding company powerhouses through acquisitions and economic growth. While not all reached Berkshire Hathaway’s status, many established themselves as prominent American companies in financial services.

How did 1968’s opening day performance compare to modern IPOs like Krispy Kreme?

The number of IPOs and their first trading day dynamics were different in 1968. While modern IPOs often see dramatic price swings, 1968’s publicly traded companies typically had more modest debuts. Companies like Sealed Air and River Bancshares demonstrated different patterns than today’s IPOs.

What trends emerged among 1968 Los Angeles based companies versus other regional IPOs?

Los Angeles companies that went public showed unique characteristics in data processing and realty trust sectors. Their market performance often reflected regional economic factors. Some evolved into private equity targets during good times, while others maintained independence through autorenew packs of innovative services.

How did financial services and credit card companies from 1968 adapt to become second largest industry players?

Many 1968 financial sector IPOs transformed their business models significantly. Some expanded from traditional banking into credit card services. Several became significant players in the industry, though not reaching the scale of modern giants like Louis Vuitton in terms of global market presence.

References

1. https://www.npr.org/2023/06/05/1179430014/robert-kennedy-rfk-assassination-anniversary
2. https://www.investopedia.com/inflation-rate-by-year-7253832