When everyone is talking about the trade war and interest rates despite there are some experts who think this year was great for big companies who entered the public market for the first time. IPO was the most significant attractor for ordinary investors during this year because many companies like Uber, Lyft, Saudi Aramco, Alibaba went public. Saudi Aramco made the biggest IPO in history by raising more than $25.6 billion from the general public, and it got a market valuation of more than $2 trillion on the first day of trading.
Alibaba, on the other hand, raised $12.9 billion from the Hong Kong stock market. There was a time of pro-democracy protest going on in Hong Kong, and during that time also Alibaba performed very well from an investor’s point of view. The tech giant company received $577 billion of market capitalization from Hong Kong, which was biggest for any company. All foreign companies outside the USA received more than the expected valuation for their public listing.
Uber and Lyft are those ride-sharing startups that managed to on public listing but failed drastically at investors’ point of point. Before Uber’s IPO, many analysts were predicting that the unicorn startup would get a valuation of more than 120 billion dollars, but that did not happen, and it had to settle at $82.4 billion. Uber did not perform well after listing, and as a result of such thing, shares dropped by more than 33% since its public listing. Lyft is also facing the same issue, even after raising the right amount of funding from the public. Unicorn startups are not performing after going public, which is raising lots of questions about the long term stability of thee companies. Still, many people were able to invest in new companies during 2019, and 2020 might bring the same opportunity also.