An Initial Public Offering is when a company sells its shares to the public for the first time, which gives investors a chance to own a stake while the company raises funds for growth. It is considered a major milestone for companies. It also improves brand visibility, which helps attract more investors.
However, an IPO is a complex process that requires strategic financial planning and in-depth knowledge of legal issues. As many companies have successfully shared their IPOs, businesses, and founders can take help from their experience and learn from it.
This blog covers the biggest IPOs of all times, key insights from their success, and important IPO lessons for founders planning to take their company public.
The Biggest IPOs of All Times
Here, we have listed the biggest IPOs of all times for you. Please take a closer look.
1. Saudi Aramco – The GOAT IPO
Saudi Aramco smashed all records with its December 5, 2019 Initial Public Offering. The company raised an incredible $25.6 billion. Despite concerns over government intervention and political risks, the oil tycoon became successful. It delivered an annual growth rate of nearly 10%. As of 2023, it bolstered its IPO valuation of $1.93 trillion, which indicates that its dominant market position, which is backed by strong state support, can drive long-term success.
Lesson: Market dominance and government backing can provide stability even amid controversy.
2. Alibaba – The Power of Hype
Alibaba made history on September 19, 2014. The company raised $21.7 billion with an IPO valuation of $167.6 billion. The great investor enthusiasm caused its stock to increase by 38% on day one.
But excitement alone wasn’t enough. It had to face a few challenges, such as regulatory issues and political headwinds in China, which caused turbulence. Today, its valuation stands at $272.9 billion. It shows that while hype ignites early momentum, long-term growth depends on market conditions and government policies.
Lesson: Hype can drive an explosive start, but to become one of the biggest IPOs of all times requires stability and regulatory foresight.
3. SoftBank – The Risks of Market Instability
SoftBank raised around $21.3 billion in its December 18, 2018 Initial Public Offering. It was Japan’s biggest IPO valuation at that time. But things didn’t remain the same. The stock price changed on day one, and the company was under challenges like WeWork’s implosion and COVID-19. This downturn made things worse.
While SoftBank rebounded, its valuation today sits at $66.7 billion—far from the powerhouse it once aimed to be.
Lesson: Relying too much on risky investments can backfire—diversification is key.
4. NTT Mobile – A Market Disruptor
Before SoftBank, NTT Mobile set the record for Japan’s largest IPO on September 25, 1998, raising $18.1 billion. What made it stand out? Instead of relying on local investment banks, it brought in Goldman Sachs, which signals a shift in Japan’s financial landscape. Today, NTT Mobile has a valuation of $97 billion. This shows that strategic innovation can lead to long-term success.
Lesson: Challenging traditional norms can unlock massive growth opportunities.
5. Visa – Thriving in Crisis
It is always advised to think twice before launching an IPO during a financial meltdown, but Visa did just that on March 19, 2008. Despite the worst economic downturn in decades, Visa raised $17.86 billion and saw its stock climb 28% on day one. Today, it’s valued at $464 billion. This IPO is proof that strong fundamentals can outweigh even the toughest market conditions.Lesson: A rock-solid business model can attract investors—even in turbulent times.
Key Lessons for Founders Preparing for an IPO
Following are the key lessons that will help you learn many things if you are preparing for an IPO:
1. Build a Strong Financial Foundation
Businesses need to understand their investors, always for companies with strong financial history, continuous growth, and the potential for future success. It is advisable to learn these IPO lessons before going public.
- Strong revenue streams
- Clear expense management
- Positive cash flow or a defined path to profitability
2. Ensure Regulatory Compliance
Regulators and investors start analyzing your company once you file for an IPO. Therefore, businesses need to ensure they are following all legal regulations and financial reporting standards properly.
By following the footsteps of the biggest IPOs of all times, you can file for an IPO while being compliant with necessary regulations.
Key Steps:
- Conduct internal audits to identify compliance gaps
- Work with legal experts to navigate SEC and other regulatory filings
- Implement transparent corporate governance practices
3. Develop a Compelling Growth Story
Investors look for companies with a clear growth strategy. A compelling story should highlight:
- Market opportunity and competitive advantage
- Scalability and expansion plans
- Innovation and technological edge
4. Diversification Reduces Risks
Companies need to increase their revenue channels. An IPO is considered successful if it possesses multiple revenue streams, as more investors prefer investing in companies that tend to be more resilient in volatile markets.
5. Timing Matters
Though hype can affect initial earnings, IPO success highly depends on the market condition. Before going public, it is essential to analyze the latest market trends, sentiments of investors, and competitors’ moves.
6. Prepare for Post-IPO Challenges
Once you launch an IPO, it is also important to maintain quarterly earnings to meet the expectations of investors. Moreover, pressure from shareholder scrutiny and stock price fluctuations can not be ignored.
Best Practices:
- Communicate transparently with investors
- Focus on long-term growth rather than short-term stock price movements
- Maintain operational efficiency and financial discipline
Final Thoughts
The biggest IPOs of all time highlight the importance of strategic planning, market alignment, and financial readiness. Founders preparing to go public can take help from these lessons and pave their way to a successful IPO. A focus on financial health, regulatory compliance, and strategic planning can lead them to navigate the intricacies of an IPO and achieve sustainable success in the public market.
For more informative topics, stay tuned to Founding Startups.
