6 IPOs That Made an Impact Throughout 2019
2019 was the year that will be remembered by three words that marked it – initial public offering. All companies and organizations with IPOs allow average investors to buy the company’s shares on the stock exchange.
While this doesn’t sound surprising or relevant, it’s the first time that average investors can do that. It gives companies with IPOs an entirely new meaning, which is probably the reason why businessmen named 2019 “the year of the IPO”.
With that in mind, IPOs remain strong in numbers throughout 2019. But it’s not their numbers that make the fuzz – it’s the size of companies that went public that’s stunning.
2019 has seen a literal rise of IPOs, and many of these firms that initiated their IPOs in the last year have seen big-time gains. This type of stock price growth is the dream of most investors and companies.
We’ve decided to create a list of the top 6 IPOs that made the most significant impact throughout 2019. All six of these IPOs are expected to achieve positive net income in the following year on the market.
1. Tradeweb
Tradeweb has become one of the most significant and reliable trading platforms. It operates in the derivatives and fixed income markets. This platform is known to be the over-the-counter trading marketplace that works with the biggest names in the banking world.
When a trading platform like that teams up with the largest banks on the planet, only one thing can happen – the stocks go sky high. Tradeweb went public somewhere around April with a hot stock streak of $27 per share.
By the end of the year 2019, Tradeweb has achieved an outstanding growth of the astonishing 68.15%. Their secret lies in a subscription model that continually generates new revenue. It makes Tradeweb one of the most profitable electronic trading platforms around.
2. Luckin Coffee
Luckin Coffee is a well-known competitor of Starbucks. It’s backed by the sovereign wealth fund of the government of Singapore, as well as the likes of Blackrock. The company is a huge coffee brand, known for its fast service. It’s just two years old, and it’s already making huge waves in the marketplace.
The company planned to have 4500 stores up and running by the end of 2019. The brand succeeded in realizing this goal. It achieved extraordinary growth, which made the company burn through lots of cash.
Their IPO started at $17, but what happened next, threw everybody off – Luckin has managed to achieve an enormous stock growth. With such an off-the-charts performance, Luckin Coffee made a rapid growth of 83.06% since the company’s debut.
3. 10X Genomics
10X Genomics is a company that has been on an absolute tear since the debut in September. The company made its initial offer at $39 per share. Yet their stocks achieved a growth of 69.10% by the time the markets closed on December 10.
10X Genomics is a biotech startup that produces gene-sequencing platforms. Scientists use these platforms to do research on different types of cells. Primarily those linked to brain development, kidney disease, and various cancers.
That’s why 10X Genomics uses its sequencing platform to offer lots of consumable, recurring revenue. While their work isn’t profitable per se, there is a definite set up for profitability here.
This ensures that the company continues to grow and will become highly profitable in the year to come.
4. SmileDirectClub
SmileDirectClub was formed in 2014. It’s a tele-dentistry company with the goal of making a revolution in dentistry. The company’s innovative approach allowed it to make a stellar debut on the public markets.
SmileDirectClub practices a unique business approach. It has increased interest in less invasive cosmetic treatments and aesthetically focused businesses. The company achieved a fascinating growth in the period between 2016 and 2018. The revenues tripled during this time.
It’s expected that the revenues will go even higher in 2020. The year 2019 was really successful for the company’s IPO – its revenue increased by 88%.
5. Chewy
Chewy is an ecommerce site and e-tailer for pet food and supplies. It’s a fast-growing company, entirely focused on pets. Their primary incomes come from e-commerce as Chewy sends all pet-related products like medicine, food, and so on, in the mail. The most important thing about Chewy is the astonishing amount of autoship sales.
The satisfied pet owners decided to get their deliveries scheduled regularly. They eliminated any need to pay or sign-on. While this isn’t a typical subscription, it gets as close as possible to a real subscription model.
That aside, the company also provides exceptional customer experience. It also offers its services and products at the most affordable prices. That’s the reason why Chewy saw an outstanding growth of 56% by growing autoship sales to $744 million.
6. BridgeBio Pharma
BridgeBio Pharma is probably the crown jewel of 2019 IPOs. The company made a brilliant advance as the biggest biotech IPO of 2019. Together with their fellow unicorn Adaptive, they raised an offering price and size way above the range. With this, they upsized their IPO offerings.
The company’s primary goal is focusing on diseases driven by defects in a single gene. This focus encompasses ophthalmology, endocrinology, neurology, cardiology, dermatology, and genetically-driven cancers. BridgeBio Pharma managed to drive the number of shares in its IPO from 15 million to 20 million relatively easy.
Still, it’s what happened when the stock opened. It began at $30, only to end up with a 65% increase in trading. Things went really well for the company by the end of this year, and it’s expected to see the trend continues throughout 2020. One thing is for sure – 2020 will also be the year of IPO without any doubts.
