Delivering on a promise is a tough proposition, and to consistently deliver requires excellence on all fronts. When companies offer their shares to the public in the form of an IPO, they do so by touting their financial strength, balance sheet solidity, market opportunity, strong competitive positioning, an efficient management team, viable strategy and resilience to weather any kind of adverse events, among other things.
If investors warm to the companies and the promises they dole out, they will flock to the companies in droves, and consequently, the IPO becomes a smashing hit.
Benzinga looked at some high-profile companies, which IPOed their shares in 1997, in a bid to present their performance scorecard over a two-decade time horizon. Here is how the companies fared on their graduation after two decades.
Class of 1997
1. Amazon.com, Inc.- Date of offering: May 15, 1997
- Number of shares offered: 3 million
- Offer price: $18
- Gross proceeds: $54 million
- Gains/Loss: +123,968 percent
- Date of offering: October 15, 1997
- No. of shares offered: 10.58 million
- Offer price: $18
- Gross proceeds: +$190 million
- Gains/Loss: 1,710 percent
- Date of offering: September 19, 1997
- No. of shares offered: 4 million
- Offer price: $14
- Gross proceeds: $56 million
- Gains/Loss: +203 percent
- Date of offering: June 12, 1997
- No. of shares offered: 29.5 million
- Offer price: $26 Gross proceeds: $767 million
- Gains/Loss: +184 percent
- Date of offering: March 4, 1997
- No. of shares offered: 2.35 million
- Offer price: $15
- Gross proceeds: $35.25 million
- Gains/Loss: Charles Schwab completed a buyout of TD Ameritrade in 2019. The final close price of TD was $39.97, good for a 3,093 percent increase from its IPO price.
- Date of offering: January 31, 1997
- No. of shares offered: 2 million
- Offer price: $12
- Gross proceeds: $24 million
- Gains/Loss: (-59 percent)
- Date of offering: October 29, 1997
- No. of shares offered: 4 million
- Offer price: $18
- Gross proceeds: $72 million
- Gains/Loss: 211 percent
- Date of offering: May 14, 1997
- No. of shares offered: 2.75 million
- Offer price: $12
- Gross proceeds: $33 million
- Gains/Loss: 209 percent
Amazon: Graduating With Honors
Among the Class of 1997, Amazon is the standout performer, clocking in gains close to 49,000. Although Amazon’s shares were offered at $18, the closing price of its debut day is taken as less than $2 to account for the three stock splits the company announced in the interim.
Among the Class of 1997, Amazon stands tall and towering, as it goes from strength to strength.
