The year 2016 in the realm of Initial Public Offerings (IPOs) was notably subdued compared to the preceding years. Global economic uncertainty, concerns over the Chinese economy, the Brexit vote in the UK, and the U.S. presidential elections all contributed to a cautious approach by companies considering going public. What happened the next year? See the top IPOs of 2017, here.
As a result, the U.S., one of the largest markets for IPOs, saw a significant decline in the number of companies making their stock market debuts. The tech sector, which typically contributes a substantial number of IPOs, was quieter, with many startups opting for private funding rounds or considering alternative routes such as direct listings.
While the year started slow, there was a pick-up in the latter half, signaling some renewed confidence. Valuations became a point of contention, with several companies pricing their shares lower than initial estimates to ensure a successful launch. Among those that did go public, some outperformed expectations while others struggled to find their footing in a volatile market. In international markets, despite the overall slowdown, there were still pockets of activity. For instance, some European and Asian markets remained somewhat resilient, presenting opportunities for companies in specific sectors. All in all, while 2016 was a challenging year for IPOs, it set the stage for companies and investors to recalibrate their strategies and expectations.
Trivago IPO
Trivago, the well-known German hotel search platform, made its debut on the U.S. stock market in December 2016. In the lead-up to its Initial Public Offering (IPO), there was considerable interest given the company’s widespread recognition, stemming from its extensive marketing and television advertising campaigns. Trivago decided to list its shares on the NASDAQ under the ticker symbol “TRVG.”
The IPO was somewhat challenging due to the broader climate of 2016, where market uncertainties caused several companies to either postpone or scale back their public offerings. Reflecting this caution, Trivago priced its shares at $11, which was at the lower end of its projected range. The company raised around $287 million in its IPO, which was below initial expectations.
Post-IPO, Trivago’s stock experienced the usual fluctuations that newly listed companies often face, as investors gauged its potential in the competitive online travel market. The company’s performance on the stock market post-IPO also mirrored its operational challenges and the broader dynamics of the online travel industry.
In essence, Trivago’s IPO was emblematic of the cautious approach many companies adopted in 2016, balancing the desire to access public markets with the realities of a somewhat uncertain investment landscape.
Aritzia IPO
Aritzia, the Canadian women’s fashion brand, took its steps into the public markets in October 2016. The Vancouver-based company, known for its boutique-style stores and chic apparel, decided to list its shares on the Toronto Stock Exchange under the ticker symbol “ATZ.”
The anticipation for Aritzia’s IPO was heightened given its strong brand presence in Canada and its burgeoning expansion into the U.S. market. The company’s offering was met with enthusiasm, allowing it to price its shares at CAD $16, the higher end of its projected range. This enabled Aritzia to raise approximately CAD $400 million in its IPO, marking it as one of Canada’s more notable public offerings for the year.
Following its public debut, Aritzia’s stock saw a warm reception from investors, showcasing confidence in the company’s growth strategy and its potential to scale further in North America. The company’s journey on the public market post-IPO reflected its business growth, seasonal fashion trends, and the broader retail industry’s challenges and opportunities.
Overall, Aritzia’s IPO in 2016 highlighted the strength of its brand and its potential to further carve a niche in the fashion world, even amid the unpredictable landscape of retail.
LoopUp IPO
LoopUp, a British software company specializing in cloud-based conference calls and remote meetings, entered the public market in August 2016. The company chose to list its shares on the London Stock Exchange’s Alternative Investment Market (AIM) under the ticker symbol “LOOP.”
Given the increasing demand for efficient remote communication tools, there was a modest yet focused interest in LoopUp’s offering. The company’s niche, targeting premium professional services firms with a promise of reducing “conference call no-shows” and “dial-in pain”, set it apart from other generic conferencing solutions. By tapping into the public markets, LoopUp aimed to secure capital for further expansion and product enhancement.
LoopUp successfully priced its shares at 100p, allowing it to raise approximately £8.5 million in its IPO. This valuation reflected investors’ belief in the potential of specialized communication tools, especially as work cultures were gradually shifting towards increased remote interactions, even before the COVID-19 pandemic accelerated this trend.
Following its IPO, the company’s stock performance was influenced by its growth trajectory, the broader adoption of remote communication tools, and the competitive landscape of digital conferencing solutions. In essence, LoopUp’s 2016 IPO represented the growing value and importance of streamlined, user-friendly remote communication tools in an increasingly connected business world.
Hostess Brands IPO
Hostess Brands, the iconic American company behind beloved snacks like Twinkies and Ding Dongs, made a significant comeback with its entry into the public markets in November 2016. This move was particularly notable given the company’s tumultuous history, including its bankruptcy in 2012 and subsequent acquisition by Apollo Global Management and Metropoulos & Co. in 2013.
After its revamp and restructuring, Hostess Brands opted for a slightly unconventional route to the stock market, engaging in a reverse takeover with Gores Holdings, a special purpose acquisition company (SPAC). This maneuver allowed Hostess to be listed on the NASDAQ under the ticker symbol “TWNK.”
The market’s reception to Hostess Brands’ public offering was positive. The brand’s nostalgic value, combined with its modern business restructuring and strategic distribution methods, made it an attractive proposition for many investors. This enthusiasm enabled Hostess to achieve a valuation of roughly $2.3 billion at the time of its public market entry.
In the aftermath of its public debut, Hostess Brands’ stock performance was influenced by its operational efficiencies, the broader snack food industry dynamics, and its ability to innovate while retaining the charm of its legacy products. All in all, the 2016 public market entry of Hostess Brands signified not just a financial transaction but also the remarkable resurrection of a classic American brand.
Blackline Systems IPO
BlackLine Systems, a cloud software company that specializes in automating and controlling the entire financial close process, made its foray into the public markets in October 2016. The Los Angeles-based firm, heralded for modernizing financial operations for businesses, chose to list its shares on the NASDAQ under the ticker symbol “BL.”
Leading up to its Initial Public Offering (IPO), there was a significant interest in BlackLine due to the increasing importance of digital transformation in finance and accounting realms. With many businesses looking to shift from traditional, manual, spreadsheet-driven processes to automated, cloud-based solutions, BlackLine’s offering was seen as timely and essential.
For its IPO, BlackLine priced its shares at $17, which was above the initially anticipated range, reflecting strong demand from investors. The company successfully raised around $146 million, signaling robust confidence in its growth potential and the broader market for financial automation software.
Following its debut, the performance of BlackLine’s stock was tied to its ability to acquire new clients, expand within its existing client base, and navigate the competitive landscape of financial software solutions. In essence, BlackLine Systems’ 2016 IPO underscored the growing importance of financial software in an era increasingly driven by digital efficiencies and cloud computing.
CMC Markets IPO
CMC Markets, a leading UK-based financial spread betting and contracts for difference (CFD) provider, charted its course to the public markets in February 2016. Founded in 1989 by Peter Cruddas, CMC Markets had evolved over the years, riding the wave of online trading advancements and expanding its international presence.
Given its long-standing reputation and the growth in the online trading sector, there was notable interest in the company’s Initial Public Offering (IPO). CMC Markets chose to list its shares on the London Stock Exchange under the ticker symbol “CMCX.”
In the lead-up to its IPO, the company priced its shares at 240p, which allowed it to raise about £218 million, giving it a valuation of nearly £691 million. This valuation was a testament to its expansive customer base, broad range of products, and its robust proprietary trading platform.
After its public debut, CMC Markets’ stock performance was influenced by a variety of factors, including the broader dynamics of the financial markets, regulatory changes in the spread betting and CFD industry, and its ability to innovate and cater to a rapidly evolving trader demographic. Overall, the 2016 IPO of CMC Markets was a significant milestone in its journey, highlighting the maturation and potential of the online trading industry.
Patheon IPO
Patheon, a global provider of pharmaceutical development and manufacturing services, stepped into the public spotlight in July 2016 with its debut on the New York Stock Exchange. Based in the Netherlands but with a significant presence in North America and other regions, Patheon had established itself as a key player in the contract development and manufacturing organization (CDMO) space.
The pharmaceutical industry’s increasing trend towards outsourcing, combined with Patheon’s expansive capabilities ranging from drug development to commercial manufacturing, made its Initial Public Offering (IPO) particularly noteworthy. The company opted to list its shares under the ticker symbol “PTHN.”
Ahead of its IPO, Patheon set its share price at $21, successfully raising approximately $640 million. This fundraising underscored investors’ confidence in the growing CDMO market and Patheon’s role within it.
Post-IPO, the trajectory of Patheon’s stock was influenced by its operational performance, its ability to secure new contracts, and broader trends in the pharmaceutical industry, including the pipeline of drugs nearing commercialization. Notably, less than a year after its IPO, in 2017, Thermo Fisher Scientific announced its intention to acquire Patheon, highlighting the strategic value of the CDMO’s services in the broader life sciences landscape. In essence, Patheon’s 2016 IPO and subsequent developments showcased the evolving dynamics and consolidation trends in the pharmaceutical services industry.
NantHealth IPO
NantHealth, a part of the larger NantWorks ecosystem and focused on personalized healthcare through data analysis and systems integration, made its entrance into the public markets in June 2016. Founded by the serial entrepreneur Dr. Patrick Soon-Shiong, NantHealth aimed to transform the way complex diseases like cancer were diagnosed and treated using a more data-driven and personalized approach.
Given the growing interest in the convergence of technology and healthcare, as well as the promise of precision medicine, there was significant anticipation surrounding NantHealth’s Initial Public Offering (IPO). The company decided to list its shares on the NASDAQ under the ticker symbol “NH.”
In the build-up to its IPO, NantHealth priced its shares at $14, successfully raising about $91 million. This was a testament to the investor interest in cutting-edge healthcare solutions and the potential for technology to revolutionize medical treatment.
Following its public debut, NantHealth’s stock performance was influenced by its ability to integrate and commercialize its solutions, the broader dynamics of the healthcare technology market, and its progress in partnerships and collaborations. The company’s journey in the public market post-IPO reflected both the challenges and opportunities inherent in the rapidly evolving field of digital health and precision medicine. Overall, NantHealth’s 2016 IPO was emblematic of the growing intersection of technology and healthcare in the pursuit of better patient outcomes.
Valvoline IPO
Valvoline, one of the oldest and most recognized motor oil brands in the U.S., embarked on its journey into the public markets in September 2016. With a history dating back to 1866, Valvoline had established itself as a leading provider of automotive lubricants and chemicals, and also operated a chain of quick-lube service centers.
Given its longstanding reputation, significant market presence, and the overall stability of the lubricant industry, there was a tangible interest in Valvoline’s Initial Public Offering (IPO). The company opted to list its shares on the New York Stock Exchange under the ticker symbol “VVV.”
Ahead of its IPO, Valvoline priced its shares at $22, managing to raise approximately $660 million. The successful fundraising underlined investors’ confidence in the company’s enduring brand and its potential for growth, especially in the quick-lube service segment.
After its debut on the stock market, the performance of Valvoline’s shares was influenced by factors such as its growth strategies, broader automotive trends, and the dynamics of the lubricant and automotive services industry. The company’s evolution on the public market post-IPO highlighted its commitment to innovation and adapting to changing consumer needs in automotive care. All in all, Valvoline’s 2016 IPO marked a significant milestone for a brand with a 150-year legacy, emphasizing its sustained relevance in the automotive world.
SecureWorks IPO
SecureWorks, a cybersecurity company specializing in information security services, made its move into the public markets in April 2016. As a subsidiary of Dell Technologies, SecureWorks was well-regarded for its focus on helping businesses detect and respond to advanced cyber threats.
With increasing concerns about cybersecurity, given the surge in high-profile data breaches and cyber-attacks, there was considerable attention surrounding SecureWorks’ Initial Public Offering (IPO). The company chose to list its shares on the NASDAQ under the ticker symbol “SCWX.”
In the lead-up to its IPO, SecureWorks priced its shares at $14, which was on the lower end of its projected range. While this decision might have reflected some investor caution about the company’s valuation and the broader tech IPO climate at the time, it allowed SecureWorks to raise about $112 million.
Following its entrance into the public market, the company’s stock performance was swayed by factors like its growth trajectory in the crowded cybersecurity market, its ability to innovate and stay ahead of evolving cyber threats, and the broader trends and challenges in the cybersecurity industry.
Overall, SecureWorks’ 2016 IPO highlighted the burgeoning demand for advanced cybersecurity solutions in a digital era where businesses faced an ever-increasing array of cyber threats. The company’s journey in the public spotlight also underscored the complexities and nuances of the rapidly growing cybersecurity sector.
CRISPR Therapeutics IPO
CRISPR Therapeutics, a biotechnology company at the forefront of developing therapies using the groundbreaking CRISPR/Cas9 gene-editing technology, made its public market debut in October 2016. As one of the pioneers in leveraging CRISPR for therapeutic applications, the company garnered significant attention from both the scientific community and investors.
The promise of CRISPR/Cas9 technology to revolutionize medicine by directly modifying genes stirred considerable anticipation for the company’s Initial Public Offering (IPO). CRISPR Therapeutics chose to list its shares on the NASDAQ under the ticker symbol “CRSP.”
In the run-up to its IPO, CRISPR Therapeutics priced its shares at $14, raising around $56 million. Although this was below the initial projections, it reflected some of the uncertainties around the regulatory landscape and the clinical applications of gene-editing technologies at the time.
Following its IPO, the company’s stock performance was influenced by its progress in the development and clinical trials of CRISPR-based therapies, regulatory developments around gene editing, and the broader dynamics of the biotech industry. Notably, the potential of CRISPR/Cas9 to treat a wide range of diseases, from genetic disorders to cancer, played a significant role in shaping investor sentiment.
In essence, CRISPR Therapeutics’ 2016 IPO was emblematic of the biotech industry’s excitement and caution about a revolutionary technology that held the promise to redefine the boundaries of medicine. The company’s journey since then underscores the challenges and opportunities inherent in pioneering a new frontier of therapeutic interventions.
US Foods IPO
US Foods, one of America’s leading foodservice distributors, marked its entry into the public markets in May 2016. With a vast portfolio that encompasses fresh meats, produce, and other food products, US Foods had solidified its position as a vital link in the country’s food supply chain, serving restaurants, healthcare facilities, and educational institutions among other clients.
Given its substantial footprint in the foodservice industry and its broad customer base, there was significant investor interest in the company’s Initial Public Offering (IPO). US Foods decided to list its shares on the New York Stock Exchange under the ticker symbol “USFD.”
Leading up to its IPO, US Foods priced its shares at $23, which allowed the company to raise approximately $1.02 billion. This made it one of the more substantial IPOs of 2016 and underscored the market’s confidence in the company’s operations and growth potential.
Post-IPO, the trajectory of US Foods’ stock was influenced by its strategic acquisitions, the dynamics of the food distribution industry, and its ability to navigate challenges like fluctuating commodity prices and logistical complexities.
In a nutshell, the 2016 public market debut of US Foods highlighted the company’s significance in the foodservice distribution landscape. Its journey post-IPO provided insights into the intricacies of maintaining and expanding a vast distribution network in a constantly evolving food industry.
Twilio IPO
Twilio, a cloud communications platform offering APIs for voice, text, and video, entered the public markets with significant buzz in June 2016. As a pioneer in the platform-as-a-service domain, Twilio had quickly become a go-to for developers and businesses aiming to embed communications into their apps, websites, and services seamlessly.
Given its innovative approach to communications and a rapidly growing client base, there was considerable enthusiasm surrounding Twilio’s Initial Public Offering (IPO). The company opted to list its shares on the New York Stock Exchange under the ticker symbol “TWLO.”
Ahead of its IPO, Twilio priced its shares at $15, which was above its initial target range, highlighting the strong demand. On its first trading day, the stock surged, underscoring the tech industry’s and investors’ appetite for cloud-based platform solutions. The company managed to raise about $150 million from the offering, signifying solid investor confidence in its business model and growth trajectory.
Post-IPO, Twilio’s stock performance was influenced by its continued growth in clientele, expansions into new communication channels, strategic acquisitions, and its ability to keep pace with the ever-evolving technological landscape.
All in all, Twilio’s 2016 IPO stands out as one of the notable tech debuts of the year. It not only showcased the market’s optimism for cloud communication platforms but also set the stage for Twilio’s journey as a key player in the digital communication ecosystem.
Postal Savings Bank of China IPO
Postal Savings Bank of China (PSBC), one of the largest retail banks in China with deep roots serving the nation’s vast rural areas and urban centers alike, made a significant splash in the financial world with its entry into the public markets in September 2016. Being a major subsidiary of China Post Group, the bank has a unique advantage given its access to a sprawling postal network across China.
The anticipation surrounding the Initial Public Offering (IPO) of PSBC was palpable, not just because of its vast customer base but also due to the scale of the offering. The bank chose to list its shares on the Hong Kong Stock Exchange.
Leading up to its IPO, PSBC priced its offering to raise a whopping $7.4 billion, making it one of the world’s largest IPOs that year and the biggest since the debut of Alibaba in 2014. This immense capital raise highlighted the market’s confidence in the bank’s stability, its enormous retail customer base, and its potential for growth in the evolving Chinese financial landscape.
Post-IPO, the performance of PSBC’s stock was influenced by various factors including the broader dynamics of the Chinese economy, regulatory changes in the banking sector, and the bank’s strategies to modernize and digitize its services in line with the global banking trends.
In essence, the 2016 IPO of the Postal Savings Bank of China was not just a significant event for the bank itself but also underscored the global significance of China’s financial institutions and the continued growth potential of the Chinese banking sector.
About The Author /
ChatGPT is a large language model developed by OpenAI, based on the GPT-3.5 architecture. It was trained on a massive amount of text data, allowing it to generate human-like responses to a wide variety of prompts and questions. ChatGPT can understand and respond to natural language, making it a valuable tool for tasks such as language translation, content creation, and customer service. While ChatGPT is not a sentient being and does not possess consciousness, its sophisticated algorithms allow it to generate text that is often indistinguishable from that of a human.
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