We’ve got a little over one month left in 2018, which means some of us are already preparing for the next year.
For the initial public offering (IPO) market, 2018 was a really strong year. In fact, it was one of the strongest markets since 2014. 136 IPOS were priced in the first half of 2018, which raised $37.72 billion.
And that was just in the beginning of the year. That success has been continuing for the second half of 2018. It’s been a busy year for the IPO market, and there are no signs of it slowing down.
A big part of this year’s success in the IPO market comes from highly profiled and highly valued companies that took the leap toward becoming publicly traded.
A Few IPO Successes in 2018
One such company is cloud-storage company Dropbox (NASDAQ: DBX). Dropbox debuted in April with an IPO price of $21 and closed out its first day of trading at $28.48 — a 35% increase.
Even companies you probably haven’t ever heard of before went public and experienced amazing first-day trading success… and are still continuing that success!
A tech company called DocuSign (NASDAQ: DOCU) provides software that speeds up the agreement process. In the past, people relied on paper agreements. You’d get a bunch of copies of the same agreement, and you’d have to sign at least one for yourself, one for the other party involved in the agreement, and one for any lawyers or banks involved.
Basically, the process was a hassle. In addition to the shift toward paperwork going digital, companies and individuals needed something to ensure security and convenience, and that’s where DocuSign stepped in.
The company IPO’d at the end of August with an IPO price of $29, and on the first day of trading it reached $39.73 at close, a 37% increase. As of Monday, November 5th, the company opened up at $42.82.
Another IPO success that happened in July was from Canadian company Tilray (NASDAQ: TLRY). Tilray supplies high-quality cannabis products to thousands of patients spanning five continents through its agreements with pharmaceutical distributors. The company also produces medical cannabis in Canada and Europe.
Tilray was one of the first companies that was licensed by Health Canada to cultivate and sell medical cannabis in Canada. We can’t deny the level of success the medical marijuana market in itself has experienced in the past years, and that success is reflected in companies like Tilray.
Tilray’s IPO price was $19 per share, and it closed its first day of trading at $22.39. That’s a 17% increase, which is a little modest compared to DocuSign and Dropbox’s IPO. For Tilray, this was a perfect time to have its market debut. The medical marijuana market is on fire, especially with current legalization of the drug. It’s a growing market, and a lot of investors want to be a part of it.
Tilray opened up on Monday, November 5th, at a share price of $97.76, and it closed the day at $100.98. That’s a 431% increase from its IPO price. Those are some extraordinary gains in just three months of being a publicly traded company.
Without a doubt, 2018 was a great year for IPOs.
Finding the Hidden IPO Gems
There’s a lot to be said about the IPO market, and sometimes it goes unnoticed or attention is focused on those popular and highly valued companies. Which isn’t always terrible.
However, sometimes we’re unfortunately not paying close attention to those companies we don’t know or haven’t heard of but that are poised for market growth.
There are a lot of hidden gems in the IPO market. DocuSign is one of those. Imagine being able to snag shares of these hidden gems in the first year of trading and watching them grow into the “next Apple” or the “next Amazon.”
You can stay on top of the IPO market and familiarize yourself with these IPO hidden gems, so you can easily begin to invest in companies that are on the track toward strong growth — just like you’ve seen with Apple or Amazon.
There were some high-profile and high-valued companies that made their market debuts this year. Those companies had a huge impact on the IPO market, but they weren’t the only ones that carried the market to success.
And if you think this is the end of success for the IPO market, you’d better think twice. There have been talks of IPOs from the two well-known ride-hailing companies, Uber and Lyft. Even popular messaging platform company Slack has been rumored to be going public in 2018. Some analysts are calling it the Year of the Unicorn. (“Unicorn” is a term used to reference a software or technology startup company that’s valued at more than a billion dollars.)
It’s going to be a big year for IPOs, and it could be a big year for you! To learn more about these types of IPO hidden gems, click here to watch this presentation. Knowing what’s going on in the IPO market is going to keep you one step ahead!