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| KEYWORD TOPIC | Details |
| Number of companies that went public | Approximately 163 |
| Notable companies that went public | Square, Fitbit, Atlassian, Match Group, Pure Storage, Shopify, Ferrari, GoDaddy |
| Largest company that went public | First Data Corporation ($2.6 billion IPO) |
In 2015, several companies took the leap into the public market through their Initial Public Offerings (IPOs). This was a year filled with notable events that influenced the stock market. Companies like Match Group and Fitbit made headlines with their public offerings. Let’s look into these companies that had their IPO in 2015.
The 2015 IPO Market
The year 2015 saw 163 US companies go public, raising $25.2 billion collectively. This was lower than the previous year, indicating investors were more selective with their dollars. First Data Corporation had a sizable IPO of $2.6 billion, though it experienced some early stock fluctuations.
Companies pursuing IPOs in 2015 included well-known brands and new tech outfits. Their goal was to access growth capital, but economic factors presented challenges. Here are a few key details:
- Varied companies: The mix involved established names alongside emerging tech startups, showing shifting investor interests.
- Careful investors: Many took time choosing where to put their money after closely watching company performance.
- Economic hurdles: Firms faced headwinds like changing markets and competition, making fundraising more difficult.
The numbers point to investors taking a prudent approach during a period of transition and uncertainty for businesses. Those able to address concerns likely saw the most benefit from their public debuts.
Key Events Impacting the IPO Market
Several global events shaped the stock market in 2015. Each event had a significant influence on investor behavior and market stability.
Chinese Stock Volatility Impacted Markets
In mid-2015, Chinese stocks went through a steep decline stretching into the late summer months. The turbulence troubled many investors as it signaled potential issues spreading globally from China’s economy. Sell-offs ensued across borders among worried shareholders (1).
The fallout impacted sectors far and wide as uncertainty grew around where problems might surface next. Stock values seesawed amid the changing sentiment. Many companies found fundraising via public markets more difficult as money managers carefully weighed investment risks.
The spill-over showed just how connected economies have become. It also demonstrated investors’ sensitivity to macro shifts, highlighting the precarious nature of capital raising in times of geopolitical or financial stress. Overall, the Chinese market plunge introduced volatility that colored decision-making for months to come.
Greece’s Debt Worries Created Unease
Source: BBC News
In 2015, many people were concerned about Greece’s ability to pay back money it owed. This created tension related to investments in European companies. Would Greece be able to handle its debt? It was an important question.
In July, Greece and its creditors came to an agreement on a bailout package. This helped reduce worries for a time. The deal brought some reassurance to the financial markets. However, doubts about Greece’s situation continued as well. Investors stayed careful about putting money into European stocks. They wanted to watch closely how things unfolded with Greece paying off debt. Even with the bailout, Greece’s financial problems meant caution for people putting their money to work.
The Federal Reserve Adjusts Interest Rates
In mid-December, the U.S. central bank made a change to the cost of borrowing money. It had been almost 10 years since interest rates went up. This meant companies and people would have to pay more to get loans (2).
Stock prices moved up and down as investors thought about how the move would affect different businesses. Some companies might do better with higher rates than others. People on Wall Street had to rethink their plans for investing.
The Fed’s decision is something that doesn’t happen very often. But it shows how the economy is doing better after the big recession years ago. Banks will charge more interest now, so investors looked hard at which stocks might do good with this change. The market will watch closely to see how things go from here.
The Impact of Falling Oil Prices
During 2015, the cost of crude oil went down sharply. This happened because oil production was higher than demand. Energy companies saw their money-making decrease as prices dropped (3).
Stocks for businesses that work with oil and gas fell dramatically. The lower prices created unease in the overall stock market too. Would fewer profits in the energy industry hurt other parts of the economy? Investors became more careful with their choices.
As energy sector shares declined, it pulled down stock values in other industries as well. Companies had to adjust how they ran things with oil being cheaper. For investors, this meant more uncertainty when deciding where to put their money. It took time for markets to find their footing again with the new oil price situation. The experience showed how changes in one area can affect stock behavior across many companies.
Volkswagen’s Emissions Issues Impact the Auto Industry
In the fall, Volkswagen had big problems related to vehicle emissions. The company was not being honest about how much pollution their cars created. This shook up the entire car business (4).
Investors lost trust in Volkswagen and its stock dropped. It raised concerns about how the company operated. Other automakers faced more questions too about their emissions levels.
This event reminded people in the market that issues like this damage whole industries. Consumers started paying closer attention to what comes out of car tailpipes. As trust in the auto sector weakened, investors had to rethink commitments related to vehicle manufacturers. It showed how one company’s choices can impact investor views of a much larger segment of the economy. In the following months, automotive stocks faced added scrutiny from shareholders.
Key Insights of IPOs in 2015
In 2015, the IPO market was influenced by several trends and factors:
1. Total IPOs and Funds Raised:
About 163 companies went public in the U.S. They raised around $25.2 billion. This was a drop from the previous year, showing that investors were more cautious. The decline reflected a shift in how companies approached going public. Investors were more selective, focusing on companies with strong fundamentals.
2. Sector Performance:
The technology sector played a big role in IPO activity. Several companies made headlines, including:
- Square: A popular payment processing company that attracted a lot of attention.
- Fitbit: Known for its fitness trackers, it generated strong interest but faced challenges later.
- Atlassian: This software company saw great success, with investors eager to buy its stock.
These companies highlighted the growing interest in tech innovations and how they could shape the market.
3. Market Reactions:
After going public, many companies faced ups and downs in their stock prices. For example:
- Fitbit: Its stock struggled due to increasing competition in the fitness market. Investors became concerned about its ability to maintain growth.
- Atlassian: In contrast, its stock thrived. Positive investor sentiment helped it gain value after the IPO.
These reactions showed how important market conditions and competition were for new public companies.
Major Companies That Had Their IPO in 2015
Credits: pexels.com (Photo by: Anna Tarazevich)
1. Square Inc. (SQ)
- IPO Price: $9
- IPO Date: November 19, 2015
- Country: United States
- Stock Exchange: NYSE
- Industry: Payment Solutions
- Valuation: $2.9 billion
Square is known for its payment solutions, especially for small businesses. After going public, it quickly gained traction. Investors were drawn to its unique services that made payment processing easier for merchants. The company focused on helping small businesses thrive in a competitive market. Square’s growth showed how important technology is in everyday transactions.
2. Fitbit Inc. (FIT)
- IPO Price: $20
- IPO Date: June 18, 2015
- Country: United States
- Stock Exchange: NYSE
- Industry: Health Tech
- Valuation: $4.1 billion
Fitbit became popular for its fitness trackers. The company aimed to help people stay healthy and active. However, after its IPO, Fitbit’s stock faced challenges due to rising competition in the wearables market. Despite these struggles, Fitbit remained a recognizable brand in health tech. It continued to innovate and release new products, keeping its loyal customer base engaged.
3. Atlassian Corporation Plc (TEAM)
- IPO Price: $21
- IPO Date: December 10, 2015
- Country: Australia
- Stock Exchange: NASDAQ
- Industry: Software
- Valuation: $4.4 billion
Atlassian specializes in software for team collaboration. Its tools, like Jira, are popular among businesses. The IPO was a success, driven by strong demand for its products. Investors recognized Atlassian’s potential for growth in the tech sector. The company continued to expand its offerings, making it a valuable player in the software market.
4. Match Group Inc. (MTCH)
- IPO Price: $12
- IPO Date: November 18, 2015
- Country: United States
- Stock Exchange: NASDAQ
- Industry: Online Dating
- Valuation: $2.9 billion
Match Group operates popular dating platforms, including Tinder and Match.com. Its IPO was well-received, reflecting the growing trend of online dating. Investors saw the potential for continued growth in this industry. Match Group thrived in the public market due to its strong brand recognition and user base. The company focused on expanding its services to attract more users.
5. Pure Storage Inc. (PSTG)
- IPO Price: $17
- IPO Date: October 7, 2015
- Country: United States
- Stock Exchange: NYSE
- Industry: Data Storage
- Valuation: $3.1 billion
Pure Storage focuses on data storage solutions. After its IPO, the company faced competition but continued to innovate. It aimed to provide fast and efficient storage options for businesses. Investors appreciated Pure Storage’s commitment to growth in a crowded market. The company’s technology helped it stand out among competitors.
6. Shopify Inc. (SHOP)
- IPO Price: $17
- IPO Date: May 21, 2015
- Country: Canada
- Stock Exchange: NYSE
- Industry: E-commerce
- Valuation: $1.27 billion
Shopify made waves with its e-commerce platform. It allows businesses to create online stores easily. The IPO attracted many investors, as more businesses moved online. Shopify’s growth has continued, driven by the increasing demand for e-commerce solutions. The company focused on helping entrepreneurs succeed in the digital marketplace.
7. Ferrari N.V. (RACE)
- IPO Price: $52
- IPO Date: October 21, 2015
- Country: Italy
- Stock Exchange: NYSE
- Industry: Automotive
- Valuation: $9.8 billion
Ferrari is a top luxury car brand. Its IPO attracted significant investor interest due to its strong brand and high-end products. The company performed well in the stock market, reflecting its elite status. Investors were eager to be part of a brand known for quality and performance. Ferrari’s focus on exclusivity helped maintain its appeal.
8. GoDaddy Inc. (GDDY)
- IPO Price: $20
- IPO Date: April 1, 2015
- Country: United States
- Stock Exchange: NYSE
- Industry: Web Hosting
- Valuation: $4.5 billion
GoDaddy is a leading web hosting service. Its IPO was successful as demand for online services rose. Investors saw potential in GoDaddy’s ability to help businesses grow online. The company focused on providing easy-to-use tools for website creation and management. GoDaddy’s strong market presence made it a popular choice for entrepreneurs.
Additional Notable IPOs
Other companies that went public in 2015 included:
- Etsy (April 16, IPO price: $16)
- Planet Fitness (August 6, IPO price: $16)
- Wingstop (June 12, IPO price: $19)
These companies showcased diverse industries, from e-commerce to fitness, highlighting the variety of the IPO market in 2015. Each company brought something unique to the table, appealing to different types of investors.
Conclusion
In wrapping up, the IPO market of 2015 was marked by a mixture of optimism for technology-driven companies and caution stemming from broader economic uncertainties. While some firms successfully capitalized on their public offerings, others struggled to maintain momentum amid changing market conditions. The year illustrated both the potential rewards and risks associated with going public in a fluctuating economic environment.
FAQ
How did the global economy and stock exchange conditions affect the number of IPOs in 2015?
The stock exchange saw varying activity as the global economy faced mixed signals. While tech companies and consumer goods firms continued hitting the market, market volatility impacted the total number of IPOs. Many companies waited for optimal market conditions before began trading, leading to strategic timing of public offerings.
What were some of the biggest IPOs in terms of market cap and amount raised?
Among the biggest IPOs, Alibaba Group Holding dominated discussions with its massive market cap. Other notable players included Columbia Pipeline and Shake Shack, with their gross proceeds exceeding expected range. The year saw several billion market valuations across various sectors.
How did tech IPOs and health care companies perform during their day of trading?
Tech IPOs like Teladoc Health often saw their share price fluctuate significantly on day of trading. Health care companies generally performed within their expected range, with life sciences firms drawing particular interest. The closing price often reflected strong growth potential.
What trends emerged in food delivery and renewable energy sectors?
Food delivery companies like Blue Buffalo entered the market alongside renewable energy firms like TerraForm Global. These sectors attracted attention due to their innovative business models and autorenew revenue streams, with many achieving offer prices at the higher end of their year period projections.
How did private equity backed companies like EQT GP Holdings fare in the IPO market?
Private equity parent company sponsored IPOs, including EQT GP Holdings and various real estate partners LP structures, demonstrated strong market share. Net proceeds often supported expansion plans, particularly in natural gas and pipeline partners ventures.
What distinguished storage company and car manufacturer IPOs in 2015?
Storage company IPOs and car manufacturer public offerings often centered on their time of the IPO valuations. Tallgrass Energy exemplified how companies could leverage their business model and growth potential to attract investors within this group IPO environment.
How did companies like Planet Fitness and Spin Master perform relative to their IPO price?
Planet Fitness and Spin Master’s stock price movements from their offering price reflected broader market dynamics. Both companies, along with Getty Images, saw their market share evolve as they adapted to being a public company, with particular attention to Hong Kong and other global markets.
References
- https://www.vox.com/2015/7/8/8911519/china-stock-market-charts
- https://www.federalreserve.gov/newsevents/pressreleases/monetary20151216a.htm
- https://www.eia.gov/todayinenergy/detail.php?id=28672
- https://www.forbes.com/sites/georgkell/2022/12/05/from-emissions-cheater-to-climate-leader-vws-journey-from-dieselgate-to-embracing-e-mobility/
