An IPO; Initial Public Offering refers to when a company that is private, sells its stock for the first time to the public. This is normally a way to raise market-awareness and capital by small companies even though it’s a method also employed by large companies that seek to be publicly traded.
Large companies that are today publicly traded were private companies at some point I time and they chose to make the leap into been publicly traded. There are companies out there that most people wish they had taken time to look into and invest in as it would have been the investment of a lifetime.
Below is a list of three companies that were once private but had their stocks go up tremendously the moment they were publicly traded having many people wishing they could go back in time and invest in them early.
- Chipotle Mexican Grill Inc.
In the year 2006, Chipotle Mexican Grill also known as CMG was launched as an IPO on the NYSE: New York Stock Exchange. At this time, its shares were priced at $22 for one share. On the first day of its stock been traded, share prices hit double figures so that by closing, the cost of its shares was $44 per one share. The company’s highest price of all was in 2015 during summer when it hit $742.23. This was before the company’s earnings, share price and revenues were dropped by issues of food safety.
Today, CMG trades for about $400 per one share. What began as a small establishment in Colorado by Steve Ells turned into a giant in the field of business as it brought in freshness in the burrito business, making it one of the companies that one would’ve wish they had invested in a few years ago. In 2015, Chipotle was in more than 2000 locations with a staff base of more than 45,000 people and a net income of about $475 million.
- Starbucks Corporation
Starbucks was founded in the year 1971 in Seattle, Washington by three partners; an English teacher: Jerry Baldwin, a writer: Gordon Bowker and a history teacher: Zev Siegl.
In the year 1992, it went public. At first, its shares were going for $17 per share. Going by stock splits it would mean that the initial share price would’ve been about $0.27 per share. If one would have been able to get to purchasing 100 shares when the company began publicly trading, it would mean that that investment would be worth $370, 175 today. This figure is excluding dividends, which as of 2010 the company has been paying.
In the coffee industry, we can term Starbucks as being a household name. It would be difficult not to notice one of its outlets in the big cities. Every year the company continues to expand and open up thousands of new outlets. Its plan is to expand to about 30,000 outlets on the global scale. The company will continue expanding what it offers to its clientele. This means, only more success awaits it.
- Amazon.com Inc.
In the last handful of years, Amazon.com Inc. has proved itself to be in the list of the hottest stocks. However, this was not always the case. In the year 1997, the company made its debut for a price of $18 per one share on the NASDAQ. For those who were able to buy about 100 shares of the company’s initial price on the trading day, I guarantee that they are just about the happiest investors out there. The company’s stock split three separate times which means, the 100 shares bought would be just about 1,200 shares. This means that an initial investment of $1,800 from the 100 shares bought would be worth a mind blowing $897, 852.
Despite some setbacks here and there, Amazon stocks have been one of the best performing showing no signs of slowing down per say. The company is growing its cloud businesses and ecommerce everyday which means improved profits and revenues thus these good returns don’t seem to be ceasing any time soon.
There are a number of financial derivatives dealers who offer online trading to investors across world markets. Dealers such as CMC Markets analyze stock markets and help investors buy and sell profitable stocks though at the end of the day, the decision is yours as an investor
Every year, companies continue launching IPO’s and investors are ever seeking out the next Chipotle, Starbucks or Amazon in their respective industries. The above companies continue to perform very well as they expand their business which means they are still viable investment options.