The number of initial public offerings (IPOs) fell to a six-year low in 2015, with only 169 companies going public, according to a Dec. 18 report from Renaissance Capital. The technology industry was especially hard hit, with just 23 companies raising a total of $4.2 billion in 2015, down from the 55 firms that raised $32.3 billion a year earlier, according to the Quartz (QZ.com). With so few tech companies going public, it seemed significant to us that many of these are companies that serve the small business marketplace. Here’s how some of those companies have fared since going public.
Go Daddy
After a multi-year effort to reposition its controversial advertising and a broadening of its services beyond serving exclusively as a domain name registrar, Go Daddy raised nearly $500 million in a late March offering. Today, the company provides a wide array of services to small businesses ranging from web hosting to email marketing. The company’s shares rose more than 30 percent on their first day, to $26. Today, shares are valued at more than $33 apiece. (See our previous coverage of Go Daddy’s broadened services.)
- Debut price: $26.15
- Closing price as of Dec. 21: $33.98
- Gain/loss: +30%
- S&P performance since IPO: +0.47%
Box
Box is an online file storage and sharing service that provides services to individuals, small businesses and to large corporations. In other words, unlike others on this list, it is not a pure-play small business service provider.
- Debut price: $20.20
- Closing price as of Dec. 21: $14.05
- Gain/loss: -30%
- S&P performance since IPO: -0.31%
Shopify
The online ecommerce services business raised $131 million in May through its IPO. The company is a major provider of plug-and-play ecommerce solutions for small businesses. Its share price has risen steadily since then, notching a 58 percent gain from its opening price of $17.
- Debut price: $26.15
- Closing price as of Dec. 21: $33.98
- Gain/loss: +30%
- S&P performance since IPO: +0.47%
Square
The payment-processing company founded by Jack Dorsey, also a co-founder of Twitter. Its shares are now trading up about 30 percent higher than the opening asking price. Square raised $243 million in its November public market bid. (See our coverage of Square’s broadened services.)
- Debut price: $11.20
- Closing price as of Dec. 21: $12.24
- Gain/loss: +9.3%
- S&P performance since IPO: +1.12%
Etsy
The online craft marketplace raised $266 million in April, but it has also seen its share price decline significantly, like many highly valued companies that went public this year. Shares originally priced at $16 have been on a steady downward march, following a dramatic pop in the weeks following its debut, which pushed shares close to $36. They are now are worth about $9.30. (See our coverage of Etsy’s effort to broaden its services after its IPO.)
- Debut price: $31
- Closing price as of Dec. 21: $8.71
- Gain/loss: -72%
- S&P performance since IPO: +2.27%
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