The year 2016 was significant for the stock market, as it saw many companies go public through Initial Public Offerings (IPOs). An IPO is a process through which a private company sells its shares to the public for the first time. It raises capital for expansion and growth. Companies That Had Their IPO in 2016. This article will take a closer look at the companies that had their IPO in 2016.
What is an IPO?
Before diving into the companies that had their IPO in 2016, let’s first understand what an IPO is. An IPO is a process through which a private company offers its shares to the public for the first time. In other words, an IPO is a way for a company to raise capital by selling ownership stakes to the public. The process involves filing a registration statement with the Securities and Exchange Commission (SEC). Under this, the company must disclose financial information, risks, and other relevant details to potential investors. Once the registration is approved, the company can sell its shares to the public through a stock exchange.
Background
2016 was a crucial year for IPOs, with many companies taking advantage of a favorable market to raise capital. Some of the factors that contributed to the rise of IPOs in 2016 included:
- Low-interest rates: The Federal Reserve had kept interest rates low for several years, making it cheaper for companies to borrow money and go public.
- Robust economy: The US economy was relatively stable in 2016, with low unemployment rates and solid growth. It provides a favorable environment for companies to go public.
- Favorable regulatory environment: The JOBS Act, passed in 2012, made it easier for smaller companies to go public by reducing regulatory burdens and reporting requirements.
Companies That Had Their IPO in 2016
In 2016, there were many notable IPOs, ranging from tech companies to healthcare providers. Let’s take a look at some of the most significant IPOs of the year:
1. Twilio Inc. (TWLO)
Twilio is a cloud communications platform that allows developers to add messaging, voice, and video to their applications. The company had its IPO in June 2016, raising $150 million by selling 10 million shares at $15 per share. Since then, the company’s stock has soared, with a market cap of $58 billion as of March 2023.
2. Nutanix Inc. (NTNX)
Nutanix is a cloud computing company that provides hyper-converged infrastructure solutions for enterprises. The company had its IPO in September 2016, raising $238 million by selling 14.9 million shares at $16 per share. Although the stock price initially dropped after the IPO, it has since rebounded, with a market cap of $8.3 billion as of March 2023.
3. Acacia Communications Inc. (ACIA)
Acacia Communications provides high-speed coherent optical interconnect products that enable cloud infrastructure operators and content providers to meet the fast-growing demand for data. The company had its IPO in May 2016, raising $103 million by selling 4.5 million shares at $23 per share. The stock price has fluctuated over the years, and the company was acquired by Cisco Systems in 2019 for $2.6 billion.
4. Apptio Inc. (APTI)
Apptio is a provider of software that helps organizations manage and optimize their IT spending. The company had its IPO in September 2016, raising $94 million by selling 6 million shares at $16 per share. The stock price has remained relatively stable, with a market cap of $1.7 billion as of March 2023.
5. The Trade Desk Inc. (TTD)
The Trade Desk is a demand-side platform that enables ad buyers to manage and optimize their digital advertising campaigns across various channels and devices. The company had its IPO in September 2016, raising $84 million by selling 4.7 million shares at $18 per share. Since then, the stock has skyrocketed, with a market cap of $43.6 billion as of March 2023.
Final Analysis:
In conclusion, the year 2016 was a busy one for IPOs, with many companies taking advantage of a favorable market to go public and raise capital. While some of these companies have performed well since their IPOs. Others have faced challenges in expanding their businesses and meeting investor expectations. Nonetheless, the IPO market remains an important avenue for companies to access capital and grow their businesses.