Delivering on a promise is a tough proposition, and to consistently deliver requires excellence on all fronts. When companies offer their shares to the public in the form of an IPO, they do so by touting their financial strength, balance sheet solidity, market opportunity, strong competitive positioning, an efficient management team, viable strategy and resilience to weather any kind of adverse events, among other things.
If investors warm to the companies and the promises they dole out, they will flock to the companies in droves, and consequently, the IPO becomes a smashing hit.
Benzinga looked at some high-profile companies, which IPOed their shares in 1997, in a bid to present their performance scorecard over a two-decade time horizon. Here is how the companies fared on their graduation after two decades.
One has to keep in mind that the gain or loss percentage is based on the adjusted closing price (adjusted for splits and/or dividends) on the day of its listing.
Class of 1997
1. Amazon.com, Inc. (NASDAQ:AMZN)
Date of offering: May 15, 1997
Number of shares offered: 3 million
Offer price: $18
Gross proceeds: $54 million
Gains/Loss: +123,968 percent
2. C.H. Robinson Worldwide, Inc. (NASDAQ:CHRW)
Date of offering: October 15, 1997
No. of shares offered: 10.58 million
Offer price: $18
Gross proceeds: +$190 million
Gains/Loss: 1,710 percent
3. Childrens Place Inc (NASDAQ:PLCE)
Date of offering: September 19, 1997
No. of shares offered: 4 million
Offer price: $14
Gross proceeds: $56 million
Gains/Loss: +203 percent
4. Ralph Lauren Corp (NYSE:RL)
Date of offering: June 12, 1997
No. of shares offered: 29.5 million
Offer price: $26 Gross proceeds: $767 million
Gains/Loss: +184 percent
5. TD Ameritrade Holding Corp. (NASDAQ:AMTD)
Date of offering: March 4, 1997
No. of shares offered: 2.35 million
Offer price: $15
Gross proceeds: $35.25 million
Gains/Loss: Charles Schwab completed a buyout of TD Ameritrade in 2019. The final close price of TD was $39.97, good for a 3,093% increase from its IPO price.
6. Cerus Corporation (NASDAQ:CERS)
Date of offering: January 31, 1997
No. of shares offered: 2 million
Offer price: $12
Gross proceeds: $24 million
Gains/Loss: (-59 percent)
7. Casella Waste Systems Inc. (NASDAQ:CWST)
Date of offering: October 29, 1997
No. of shares offered: 4 million
Offer price: $18
Gross proceeds: $72 million
Gains/Loss: 211 percent
8. Rambus Inc. (NASDAQ:RMBS)
Date of offering: May 14, 1997
No. of shares offered: 2.75 million
Offer price: $12
Gross proceeds: $33 million
Gains/Loss: 209 percent
Amazon: Graduating With Honors
Among the Class of 1997, Amazon is the standout performer, clocking in gains close to 49,000. Although Amazon’s shares were offered at $18, the closing price of its debut day is taken as less than $2 to account for the three stock splits the company announced in the interim.
Source: Y Charts
Among the Class of 1997, Amazon stands tall and towering, as it goes from strength to strength.
Related Links:
The Basics of IPOs: Some Things You Should Know
3 Important Dates For All IPOs, Explained
Follow
