Top Non-Tech IPOs in U.S. History
Over recent times, the technology sector has gained a lot of popularity owing to the large amounts of revenue technological services and products are raising. On the flip side, there have been fewer discussions concerning the rise of other sectors. This is despite the fact that other fields, such as healthcare, offer more new releases year by year than their IT counterparts. If proper investment practices are established and applied over time, companies outside technology could provide higher returns to the investor than solely relying businesses in the ICT field of the stock market. Below, we review some non-tech issuances that have proved to be just as successful or even more successful during their offerings than their computer-related counterparts.
- General Motors
This company manufactures vehicles and vehicle parts. It is also involved in their design, advertisement to prospective buyer and distribution to various automobile markets worldwide. It has its international headquarters in Detroit, Michigan. Currently selling more than 8 million cars worldwide each year, General Motors is one of the largest vehicle manufacturers globally. It serves clientele in 35 countries and employs more than 200,000 people in its manufacturing, distribution and marketing areas.
General Motors held its Initial Public Offering on November 17th, 2010. The issuance had the firm’s shares sold at $33 each, with General Motors selling 478 million units of their common stock at this price. Notably, a key player in this company’s success has been the American government, which dropped its stake from 61 percent to 33 percent once the offering was made.
- Kraft Foods Inc.
A key player in the manufacturing and processing industry on American soil, Kraft Foods has gone on to affect clientele on a global scale. Some increasingly popular confectionery and food processing companies are under this conglomerate, and these include Cadbury and Oreo. Before its own merger with Heinz in 2012, the firm’s stock was traded on the New York Stock Exchange solely as Kraft foods. However, it currently trades under the ticker “KHC.” 12 of its brands have each raised a revenue of $1 billion from their products. Currently, Kraft Foods employs 23,000 personnel and has its headquarters in Chicago, Illinois.
The company went public on the 6th of December 2001. It priced its shares at $31 each and sold 280 million units of the stock during the firm’s issuance. The price was $1 above its price range, which was $27 – $30. The success of this offering was mainly as a result of investors believing the business had a bright future with little risk in the case of a recession later on.
- United Parcel Services Inc.
Commonly called “Big Brown” as a result of its brown-colored packages and uniforms, this package-delivery company has become the largest in the world in its field. Apart from delivery trucks, United Parcel Services also owns a private airline whose planes convey packages across 220 countries. The firm makes a whopping 15 million deliveries each day and has a clientele above the 7 million mark. Its headquarters are located in Sandy Springs, Georgia.
The enterprise went public on 11th November 1999. It had previously targeted a share price range of $47 – $49 but exceeded price expectations when the stock’s price was issued at $50 per share. The company sold 110 million of its shares to investors during its issuance, thereby raising a revenue of $5.5 billion. Since then, the company’s stock has soared and is currently being traded at $107.30 a share. Its success has been attributed to a strong track record in the truck industry as well as well-managed accounts. Investors were attracted by its high-profit margins and its consistency in service.