When a company has an IPO, it means the first time it will offer to the general public its stock for sale, hence the reason it is called an ‘initial public offering’. The year 2017 was recorded as the most active year in which a lot of companies had their IPO, as a result, over $46 billion was raised.

An initial public offering is a big deal and as such, most private companies are looking forward to the day they’d go public, as it’ll for the most part, help build their credibility and increase their chances of getting additional funding. Before we go into listing the top 13 notable companies that had their IPO in the year 2017, let us first understand the meaning of IPO, how it works, and why it is important. Come along!

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What is IPO and Why is it Important?

IPO is the process of making available for the first time to members of the general public shares of once a private company through the issuance of brand-new stock. A corporation will make the transition from being privately owned to being owned by the public when it does this.

Because it often involves a share premium for current private investors, the transition from a private to a public firm can be a crucial opportunity for private investors to completely realize rewards from their investment. At the same time, public investors are permitted to participate in the offering.

Understanding Initial Public Offerings

A company is private until it has an IPO. As a private company that hasn’t gone public yet, the business has grown with a relatively small number of owners. These include early investors like the founders, family, and friends, as well as professional investors like venture capitalists or angel investors.

An initial public offering (IPO) is a big deal for a company because it lets the company raise a lot of money. This makes it easier for the company to grow and get bigger. The company may also be able to borrow money on better terms if it is more open and has a good reputation for selling its shares.

When a business has grown to the point where it thinks it can handle the strict rules of the SEC and the benefits and responsibilities of having public shareholders, it will start to say that it wants to go public.

Usually, a company will reach this stage of growth when its private value has hit about $1 billion, which is also known as “unicorn status.” But private companies with strong fundamentals and proven ability to make money can also be eligible for an IPO, based on how competitive the market is and how well they can meet listing requirements.

Through underwriting due research, a company’s IPO shares are given a price. When a company goes public, the private shareholders who owned shares before become public shareholders, and their shares are now worth the public selling price. Underwriting shares can also have special rules for going from private to public ownership.

What Is the Purpose of an Initial Public Offering?

Some of the main reasons to do an IPO are to raise money through the sale of shares, to give business founders and early investors access to cash, and to take advantage of a higher valuation.


Here is a list of notable companies that had their IPO in the year 2017

#1. Cavana

Carvana is a popular online used automobile reseller best known for its car vending machines. It was created in 2012 and buys, refinances, and sells cars in locations around the country. Carvana was among the companies that had their IPO in 2017.

Carvana debuted on the New York Stock Exchange (NYSE) in late April 2017. It sold 15 million shares for $15 each. Unfortunately, shares fell 14% to $13.50, resulting in Carvana raising around $225 million during their IPO.

#2. Roku

Roku is a manufacturer of digital media devices for video streaming. The company was the number one TV streaming platform in the United States at the time of its IPO, with over 15 million active accounts.

In September 2017, Roku had its first public offering (IPO) on the NYSE and sold 18 million shares. It started trading at $14 a share and then experienced a rise of 67%, ultimately finishing the IPO at $23.50 per share. It set out to sell 15.7 million shares but was finally successful in raising $219 million.

#3. Funko

Funko, which was created in 2005, specializes in the production and sale of pop culture artifacts. They specialize in bobbleheads and figurines, but they also sell accessories, action figures, and games.

At the beginning of November 2017, the pop culture company Funko, which is based in Washington, went public. Although Funko set the price of each of its 10.4 million shares at $12 a share, the company was met with some criticism on the stock market. At the end of the trading day, the price of a share was $7.07, representing a decrease of 41%. It only managed to bring in $125 million, falling short of its target of $245 million in revenue.

#4. Blue Apron

Blue Apron is an online retailer that specializes in selling and delivering pre-measured ingredients for a variety of dishes. It was the first company in the food delivery industry to obtain an initial public offering (IPO). Today, they now have numerous rivals and currently buy, sell, and refinance automobiles in cities located all across the United States.

The IPO for this meal-kit provider was priced at $10 per share and took place in the summer of 2017. In order to compete with other companies, the price was reduced from an original estimate to $17. Blue Apron planned to raise around $300 million via the sale of 30 million shares. However, stocks didn’t move much, with the price jumping to $11 at one time before falling down to $10 at the close.

#5. HelloFresh

In the year 2011, HelloFresh was established in Berlin, Germany. It is now one of the largest meal-kit providers in the United States and has operations in every region of the world.

HelloFresh, a German company that provides meal kits, made its debut on the Frankfurt Stock Exchange in the fall of 2017, priced its shares at €10.25, which is equivalent to approximately $11.91. Their primary rival, Blue Apron, had already gone public earlier in the year when they made their initial public offering (IPO). When all was said and done, HelloFresh’s revenue was more than twice as high as that of Blue Apron.

#6. SNAP Inc.

2011 marked the beginning of Snap Inc., a social media firm. It is the company that developed the social media software known as Snapchat, which allows users to send image messages to their friends that vanish after a few seconds of being viewed by the recipient.

In March 2017, Snap Inc. made its debut on the stock market by offering 200 million shares at a price of $17 per share. Snap’s first day of trading was a huge success, as seen by the company’s closing price of $24.48 a share, which represented a gain of up to 44 percent. At its peak, Snap was able to sell shares for as much as $26.05 a unit. It was the year’s most successful initial public offering (IPO) at the time.

#7. Redfin

Redfin is a real estate company that specializes in using mobile apps to buy and sell homes. The ability to look at listings and schedule tours may now be done completely online. The business was established in 2004, and its current CEO has referred to the company as the “Apple of real estate.”

In July of 2017, thirteen years after the company’s founding, the real estate marketplace Redfin went public. The first public offering price for Redfin was $15 per share. On the first day of trade, the price of the shares increased by 44.7 percent, leading to earnings of $138.5 million.

#8. MuleSoft

The software startup MuleSoft was established in 2006, and it assists enterprises in connecting data across on-premise devices. The city of San Francisco in the state of California is home to its headquarters.

In March 2017, MuleSoft became a publicly traded company, and each of its 13 million shares was priced at $17. It accomplished a rise of 45 percent as a result of its shares hitting a high of $25.92 before falling to a closing price of $24.75.

#9. Invitation Homes

Invitation Homes, the largest home rental service in the U. S., was named the best-performing major IPO of 2017. In February, the business had $1.54 billion in its third-largest offering of the year, priced its shares at $20 each. The company was formed as a real estate investment trust (REIT) as a result of Blackstone Group (BX) purchasing foreclosed properties following the financial markets meltdown. It spent $10 billion assembling a portfolio of 48,000 homes, largely in the western and southeastern United States.

Invitation Homes rose in August after announcing a merger with Starwood Waypoint Homes to form an $11 billion home rental service, despite trading relatively flat after becoming public. Invitation’s stock is now trading above $23 per share after the transaction was completed in November.

#10. SEA

Sea (SE), a Singapore-based online gaming and e-commerce company, tripped nearly immediately out of the gate, with its stock falling below $15 per share inside the first hour of trade. Perhaps investors were alarmed to learn that the e-gaming specialist had never made a profit and had failed to do so in its maiden quarterly report as a public business. Despite the fact that it is backed by Tencent, which just purchased a 10% investment in Snap, Sea has not overcome its misgivings, nor has its stock risen above its IPO price: it currently trades at about $13.50 per share.

Other Companies that had their IPO in 2017 also include:

Keane Group, Inc. (FRAC).

  • IPO Price: $19 per share
  • Proceeds from IPO: $584.7 million
  • Headquarters: Houston, TX

Emerald Expositions Events Inc.

  • IPO Price: $17 per share
  • Proceeds from IPO: $303 million.
  • Headquarters: San Juan Capistrano, CA

Cloudera Inc.

  • IPO Price: $15 per share
  • Proceeds from IPO: $258.8 million
  • Headquarters: Palo Alto, CA

Gardner Denver Holdings

  • IPO Price: $20 per share
  • Proceeds from IPO: $826 million  
  • Headquarters: Milwaukee, WI

Why Would a Company Not Want to Go Public?

Many things could make a company decide not to go public. Some of these reasons are that an IPO is hard and expensive to do, the founders have to give up full control, and stricter reporting is needed to follow SEC rules.

Can Anyone Put Money into an IPO?

When a new IPO comes out, there is often more demand than there is supply. Because of this, there is no promise that everyone who wants to buy shares in an IPO will be able to do so. People who want to take part in an IPO may be able to do so through their brokerage company. However, sometimes an IPO is only available to a firm’s larger clients. You could also invest in an IPO through a mutual fund or some other type of financial vehicle.

Is an IPO a Good Way to Make Money?

In general, IPOs are popular with investors because the price of the stock tends to move a lot on the day of the IPO and in the days after. This can sometimes lead to big gains, but it can also lead to big losses. At the end of the day, investors should rate each IPO based on the company’s prospectus, their financial situation, and how much risk they are willing to take.

Who gets the Money When a Company Goes Public?

When a company goes public, the money goes straight to the company. After the IPO, when the shares trade on a stock market, none of that money goes to the company. This is the money that buyers trade with each other when they buy and sell shares on the exchange.

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