Initial IPO returns in the United States fluctuated between 2005 and 2023. Throughout the period considered, 2020 was the best year for first-day gains, amounting to 23 percent. In 2023, the average first-day gain after an IPO in the U.S. was zero percent, as IPOs maintained their offering prices on their first day of trading.
Not all IPOs result in long-term gains for the respective company; however, the average year-end gains for all companies that went public in the United States have been mostly positive each year over the past decade. In 2023, however, the average returns amounted to a negative 56 percent in the first year after their IPO.
In 2024, post-IPO performances on the London Stock Exchange (LSE) varied greatly. With a 250 percent increase in share prices, Rosebank Industries was the leading company in terms of performance. On the other hand, with a 33 percent reduction in share prices, GenIP showed the weakest post-IPO performance.
Since the IPO on the Nasdaq Stock Market on March 28, 2023, Jin Medical International's stock price has increased from eight U.S. dollars to 237.51 U.S. dollars as of Feburary 7, 2024, to $1.84B, an increase of nearly 3,000 percent.
Equity returns remained high in 2020, in spite of the uncertainty and volatility caused by the coronavirus pandemic and related partial shutdowns. Initial public offerings (IPOs) ended the year with the highest rate of equity returns, which amounted to 76 percent returns for investors. However, the most compelling financial story in the second half of the year revolved around the huge increase in IPOs via special purpose acquisition companies (SPACs). SPAC mergers refer to the practice of a SPAC, which is a publicly listed company with no operations, merging with a private company to take the latter public without following the normal IPO process. In 2021, however, IPOs and SPAC mergers experienced negative returns.
Why are NASDAQ and S&P 500 relevant benchmarks?
The Nasdaq and the S&P 500 are two of the most important stock indices in the United States, if not the world. The Nasdaq Composite Index includes over 2,500 stocks listed on the Nasdaq stock market, which is the second largest stock exchange globally. The S&P 500 index tracks the stock value of 500 large companies, such as Facebook and Alphabet, listed on the New York Stock Exchange.
What level of impact did the pandemic have on these indices?
Over the past decade, both the NASDAQ Composite index and the S&P 500 index have skyrocketed in value. However, both indices took a hit in February and March 2020 when the uncertainty caused by the pandemic led to investors selling off assets en masse. This dip was short-lived and both indices had fully recovered by the third quarter.
2021 was quite a year for initial public offers (IPOs) in the United States, which was largely influenced by the significant rise in the number of special purpose acquisition companies (SPACs) who went public. In 2021, there were 1,035 initial public offerings (IPOs) in the United States. In 2022 and 2023, however, the number of IPOs dropped to 181 and 154 respectively.
What does it mean to go public?
The management of a private company has a lot of control over its operation but raising funds from investors is more difficult. To access funds from regular investors, that is the general public, firms go public by offering stock shares at a certain price. As a result, these firms often have more capital to work with. An IPO can, and often does, raise billions of dollars for a firm. However, publicly traded companies also face increased regulation and disclosure requirements.
Staying private
Some firms delay going public for a longer time, in spite of their increasing value. If their valuation goes above one billion U.S. dollars, these firms are called unicorns and the highest valued unicorns are mostly based in the U.S. and China. Some firms, such as SpaceX, are still heavily investing in research and development projects, which shareholders often dislike due to low short-run dividends. At the moment, most unicorns are found in the technology sector, which is also the leading sector for IPOs in the United States. This indicates that investors consider this to be the industry most likely to see growth, and thus most worth investing in when companies go public.
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Smithfield Foods' IPO priced below expectations at $20 per share, raising $521.7 million, with $260.9 million benefiting the company itself. The largest U.S. pork processor returns to the market after more than ten years.
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This analysis presents a rigorous exploration of financial data, incorporating a diverse range of statistical features. By providing a robust foundation, it facilitates advanced research and innovative modeling techniques within the field of finance.
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More than half of IPOs in the United States in 2023 generated negative first day returns, up from 39.5 percent of IPOs in the previous year. This represents one of the highest share of negative returns throughout the period considered, second only to that recorded in 2008.
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Saudi Aramco offered 1.5% of its company (equivalent to 3 billion shares out of total 200 billion share) to investors on December 10, 2019 at SAR32 (US$8.53) per share. The share price increased in the following week. Closed price on Saudi Arabia's Tadawul exchange was SAR38.00 (US$10.13) per share on December 16, 2019, resulting in market value slightly above US$2 trillion and making Aramco as the world’s most valuable company.
Saudi Aramco outperforms all other major integrated oil and gas companies on key performance indicators of production, reserves, lifting costs and net income owing to its abundant hydrocarbon reserves with majority of them laying in operationally favourable onshore and shallow water offshore locations. In 2018 the upstream segment contributed over 99% of Earnings Before Interest and Taxes (EBIT). The Company has planned major expansions of the country’s main offshore fields that forecast to comprise about 60% of the upstream capital expenditure from 2019-22. The Company is more globally diversified in its downstream sector, investing in existing and upcoming refinery and petrochemical projects in Asia and the US in addition to expansion of its domestic capacities. Read More
Among the largest IPOs on the Frankfurt Stock Exchange in 2024, Pentixapharm Holding AG had the worst performance, with its shares falling 41.18 percent since its listing. On the other hand, Springer Nature AG & Co. KGaA saw its shares value increase by approximately nine percent. The graph shows the share price development of the largest IPOs in Germany in 2024.
As of December 2024, Rosebank Industries was the best performing company of the year since its initial public offering (IPO). The company's stock value increased dramatically since its IPO, growing 250 percent throughout the year. Second in the ranking of the best performing IPOs in 2023 was Raspberry Pi, gaining 123 percent since its IPO.
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As of August 2023, Lubreref's performance since the initial public offering was 54 percent. The largest initial public offering in the Gulf Cooperation Council between 2022 and Q3 2023 was DEWA (Dubai Electricity & Water Authority) at the Dubai Financial Market which generated proceeds worth over six billion U.S. dollars.
As of January 2022, Parsley Box, launched on the Alternative Investment Market (AIM) of the London Stock Exchange (LSE) in March 2021, was the worst performing company since its initial public offering (IPO). The company's stock lost approximately 85 percent of its value since its IPO. Second in the ranking of the 30 worst performing IPOs in 2021 was Cizzle Biotechnology, listed on the UK Main Market of the LSE in May 2021, which, as of January 2022, lost 72 percent compared to its IPO value.
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According to Cognitive Market Research, the global Linear Alkyl Benzene market size will be USD 8524.5 million in 2025. It will expand at a compound annual growth rate (CAGR) of 5.00% from 2025 to 2033.
North America held the major market share for more than 40% of the global revenue with a market size of USD 2045.88 million in 2025 and will grow at a compound annual growth rate (CAGR) of 3.3% from 2025 to 2033.
Europe accounted for a market share of over 30% of the global revenue with a market size of USD 1619.66 million.
APAC held a market share of around 23% of the global revenue with a market size of USD 4006.52 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.2% from 2025 to 2033.
South America has a market share of more than 5% of the global revenue with a market size of USD 323.93 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.7% from 2025 to 2033.
The Middle East had a market share of around 2% of the global revenue and was estimated at a market size of USD 340.98 million in 2025 and will grow at a compound annual growth rate (CAGR) of 6.3% from 2025 to 2033.
Africa had a market share of around 1% of the global revenue and was estimated at a market size of USD 187.54 million in 2025 and will grow at a compound annual growth rate (CAGR) of 5.0% from 2025 to 2033.
The detergent and surfactant category is the fastest growing segment of the Linear Alkyl Benzene industry
Market Dynamics of Linear Alkyl Benzene Market
Key Drivers for Linear Alkyl Benzene Market
Increased consumer demand for cleaning products drives market growth to Boost Market Growth
The increased consumer demand for cleaning products is a significant driver of market growth. Rising awareness of hygiene, especially post-pandemic, has led to greater emphasis on sanitation and cleanliness in households, workplaces, and public spaces. Moreover, the growing preference for eco-friendly and chemical-free cleaning products is shifting the market toward sustainable options. Rapid urbanization and lifestyle changes are also boosting consumption. Innovations in product formulations, such as multi-surface cleaners and convenient packaging, further stimulate demand. As consumers seek more efficient, cost-effective, and health-conscious solutions, the cleaning products market continues to experience robust growth. For instance, On the NSE's Emerge platform for SMEs, Indian Phosphate announced an IPO in August 2024 for ?67.36 crore, with a price range of ?94 to ?99 per equity share of ?10 face value. The company produces Linear Alkyl Benzene Sulfonic Acid (LABSA), a crucial surfactant used in cleaning goods, in addition to a Single Super Phosphate fertilizer enhanced with zinc and boron. In order to promote the expansion of the Indian market for linear alkyl benzene, the IPO's proceeds will be used to finance the construction of a new manufacturing facility in the SIPCOT Industrial Park in Cuddalore District, Tamil Nadu.
Expanding use in lubricants, paints, and coatings boosts demand To Boost Market Growth
The expanding use of lubricants, paints, and coatings is a key driver of market growth spurred by industries such as automotive, construction, and manufacturing. In lubricants, enhanced performance and efficiency demands for machinery and vehicles fuel growth. Paints and coatings benefit from innovations in protective, decorative, and functional applications, including in the construction, automotive, and aerospace sectors. Increasing industrialization, urbanization, and consumer demand for high-quality, durable products contribute to the rising demand. Additionally, environmental regulations promote the use of eco-friendly and sustainable formulations, which further support market expansion in both lubricants and coatings industries.
Restraint Factor for the Linear Alkyl Benzene Market
Stringent policies limit production, impacting market growth and innovation
Stringent policies and regulations often act as key restraints in various markets, limiting production and hindering growth. Regulatory frameworks, such as environmental laws and safety standards, can delay product development, increase compliance costs, and restrict the introduction of new technologies. These constraints particularly affect indu...
The share of companies in the United States that were profitable after their IPO decreased overall after 2009, when it peaked at 81 percent. 2020 saw the lowest share at 22 percent. In the last three years, the share of profitable IPO companies has increased again, reaching 46 percent in 2023.
The median size of initial public offerings (IPOs) in the United States increased significantly in 2020. However, in 2023, the median IPO size reached 10 million U.S. dollars, a dramatic decrease compared to the previous years. This figure gives an idea of how willing speculators in the United States are to invest in a company going public, which is the process of being listed on a stock exchange for the first time. Who goes public? Most IPOs come from relatively new firms that have grown quickly. For example, the Alibaba Group Holding IPO was the largest IPO in the United States. This firm is a relatively new tech company overseen by Jack Ma, who had already generated billions in private funding before going public. However, Visa’s 2008 IPO occurred 50 years after the company’s founding, when it already had millions of credit cards in circulation. Still, the company had generated enough enthusiasm for its IPO to raise a record amount of money. Over and under the median The megadeals such as the Alibaba IPO are rare, though there is an increasing number of startup companies valued one billion U.S. dollars and over. While these raise the median value, the worst IPOs lower it. A successful IPO can lead to huge gains in valuation, the IPOs with the lowest return lose over half the company’s value.
The outbreak of the coronavirus (COVD-19) pandemic has changed the way many people communicate, personally and professionally. An increase in working from home (WFH) and social distancing has made face-to-face contact with relatives, friends, and colleagues harder. Tracing the share price of Zoom – a prominent video communications service – shows how central web conferencing has become to keeping people in contact throughout the pandemic. While the price has increased steadily throughout 2020, a positive announcement regarding the efficiency of a COVID-19 vaccine made on November 9, 2020, resulted in Zoom’s share price falling from 500.11 U.S. dollars to 403.58 U.S. dollars on November 10, 2020. Since then the share price has stumbled downwards, landing on 61 U.S. dollars on July 29, 2024. Despite the fall from grace on the stock market, Zoom's business is more robust than ever, both in terms of revenue and income. The company has really cashed in on the opportunity provided by the pandemic and has grown its business tremendously. The work-from-home experiment A recent survey showed that in companies with digital output, 75 percent of respondents work either entirely in a work-from-home (WFH) setting, or in a hybrid arrangement. Web conferencing software is experiencing an increase in spending as a result, with 67 percent of respondents planning to increase their spending in this area. Services such as Zoom are certain to see a reduction in user numbers when the pandemic is brought under control, but usage is unlikely to return to pre-pandemic levels. In a recent survey of 1,428 CIOs and IT leaders across 83 countries, 94 percent of respondents said they expect at least some of their workforce to WFH post-COVID-19. Hardware sales defy forecasts As well as increases in software and services that enable WFH, physical hardware has also seen an increase in sales, likely due to workers setting up offices at home. Following an initial dip caused by supply chain disruptions, increased demand, especially in the education and business sectors, saw PC shipments return to growth. This defies forecasts made during the initial phases of the pandemic, when analysts expected a drop of anywhere from 1.6 to 11.5 percent in the shipments of personal computing devices.
More initial public offerings (IPOs) occurred in China in 2023 than any other region or country worldwide, with 302. India followed, with 220 IPOs in that year. And the ASEAN countries rounded up the top three, with a combined number of IPOs amounting to 157. Why make an IPO? Private companies have a lot of control over their companies, but their funding sources are limited. While some of these companies have achieved valuations over one billion U.S. dollars, called unicorns, most have trouble finding the cash to grow their business. To open themselves to public investors, they make an initial offering of shares of stock. The largest IPOs are worth billions of U.S. dollars. Timing is everything The timing of an IPO can have a huge impact on its performance, which is as important for investors as it is for the companies themselves. As such, many investors watch to see who is next in line to make an IPO. The right play at the wrong time is the wrong play and might result in a negative return. While underwriters and consultants can mitigate some risk factors, markets are inherently unpredictable. As such, an IPO always carries risk, with hopes of the reward of an infusion of capital.
Initial IPO returns in the United States fluctuated between 2005 and 2023. Throughout the period considered, 2020 was the best year for first-day gains, amounting to 23 percent. In 2023, the average first-day gain after an IPO in the U.S. was zero percent, as IPOs maintained their offering prices on their first day of trading.