The year 2014 was a banner year for initial public offerings (IPOs), with a remarkable surge in market activity that witnessed a number of high-profile and promising companies go public. Investors, analysts, and industry enthusiasts still reflect on companies that had their IPO in 2014 as part of a historic moment in the financial world. From tech giants to healthcare innovators, these companies reshaped the global economy and investor portfolios.
In this article, we take a deep dive into the key players that entered the stock market in 2014, analyzing their impact, performance, and where they stand today.
Why 2014 Was a Significant Year for IPOs
2014 was considered the strongest IPO year since the dot-com boom of 2000. According to Renaissance Capital, over 275 IPOs raised nearly $85 billion in capital during the year — a sharp increase from previous years.
Factors Driving the IPO Boom
Several key elements contributed to the surge of companies going public in 2014:
- Economic Recovery: The global economy was recovering from the 2008 financial crisis, encouraging investor confidence.
- Tech Maturity: Startups that began in the early 2000s matured and sought to capitalize on their growth.
- Investor Appetite: There was strong demand for innovation and growth, especially in tech and healthcare.
Major Companies That Had Their IPO in 2014
Let’s explore some of the most notable companies that had their IPO in 2014, grouped by industry sectors.
Technology
Alibaba Group Holding Ltd. (NYSE: BABA)
- IPO Date: September 19, 2014
- IPO Size: $25 billion (largest IPO in history at the time)
- Industry: E-commerce
Alibaba’s IPO was a groundbreaking event. As a Chinese tech giant, Alibaba shattered records and became the largest IPO ever. Its debut on the NYSE put global attention on China’s booming e-commerce market.
GoPro Inc. (NASDAQ: GPRO)
- IPO Date: June 26, 2014
- IPO Size: $427 million
- Industry: Consumer Electronics
GoPro capitalized on the action camera craze, riding a wave of viral videos and social media integrations. Despite early hype, its long-term stock performance has been turbulent.
Zendesk Inc. (NYSE: ZEN)
- IPO Date: May 15, 2014
- IPO Size: $100 million
- Industry: Customer Service Software
Zendesk’s debut signaled strong investor interest in cloud-based software solutions. The company has since grown and expanded globally, becoming a staple in the SaaS industry.
Healthcare & Biotech
Juno Therapeutics Inc. (Acquired by Celgene)
- IPO Date: December 19, 2014
- IPO Size: $264 million
- Industry: Biotech
Juno focused on cutting-edge cancer immunotherapy. Its promising pipeline attracted massive interest and eventual acquisition by Celgene for $9 billion.
Radius Health Inc. (NASDAQ: RDUS)
- IPO Date: June 6, 2014
- IPO Size: $52 million
- Industry: Biopharmaceutical
Radius focused on therapies for osteoporosis and women’s health, gaining traction among biotech investors.
Finance & Real Estate
LendingClub Corporation (NYSE: LC)
- IPO Date: December 11, 2014
- IPO Size: $870 million
- Industry: Fintech
LendingClub introduced peer-to-peer lending to the public markets. Despite early enthusiasm, it later faced regulatory scrutiny and leadership changes.
STORE Capital Corp (NYSE: STOR)
- IPO Date: November 18, 2014
- IPO Size: $528 million
- Industry: Real Estate Investment Trust (REIT)**
STORE Capital focused on single-tenant operational real estate. Warren Buffett’s Berkshire Hathaway later invested in the company, validating its long-term value proposition.
Consumer & Retail
Shake Shack Inc. (Went public in early 2015, filed IPO in 2014)
Although Shake Shack officially went public in January 2015, it filed its IPO paperwork in late 2014, reflecting the IPO fervor of the year. The popular burger chain expanded rapidly, leveraging its brand appeal and quality offerings.
El Pollo Loco Holdings Inc. (NASDAQ: LOCO)
- IPO Date: July 25, 2014
- IPO Size: $107 million
- Industry: Fast Casual Dining
El Pollo Loco’s IPO was driven by the booming fast-casual dining sector. The brand continues to expand across the U.S.
IPO Performance: Winners and Losers
While some companies that had their IPO in 2014 have thrived, others have struggled to maintain their valuation or competitive edge.
Top Performers
- Alibaba: Despite regulatory pressures in China, Alibaba remains a dominant global e-commerce player.
- Zendesk: Expanded its product suite and maintained steady growth before being acquired in 2022 by private equity.
- Juno Therapeutics: Successfully exited through acquisition.
Underperformers
- GoPro: Stock soared initially but declined due to market saturation and product stagnation.
- LendingClub: Once a fintech darling, it suffered due to trust issues and poor leadership transparency.
Long-Term Impact of the 2014 IPO Class
The wave of IPOs in 2014 reshaped industries and investor expectations. It set new records, attracted global attention, and highlighted the maturing of multiple tech and healthcare startups.
Investment Lessons from the 2014 IPOs
- Hype Doesn’t Equal Performance: GoPro and LendingClub serve as cautionary tales.
- Innovation Matters: Companies like Zendesk and Juno succeeded because they addressed real needs with scalable solutions.
- Global Markets Are Key: Alibaba’s success underscores the importance of tapping into international markets.
Key Takeaways
- Over 275 companies went public in 2014, raising a combined $85 billion.
- Companies that had their IPO in 2014 ranged from tech behemoths like Alibaba to niche biotech firms like Juno Therapeutics.
- While many saw initial success, long-term performance varied widely.
- 2014’s IPO activity laid the groundwork for future tech and fintech trends.
FAQs About Companies That Had Their IPO in 2014
Q1: What company had the largest IPO in 2014?
A: Alibaba Group had the largest IPO not just in 2014, but in global history at that time, raising $25 billion on the NYSE.
Q2: Which tech companies went public in 2014?
A: Major tech IPOs in 2014 included Alibaba, GoPro, Zendesk, King Digital Entertainment, and Box (filed in 2014, IPO in 2015).
Q3: How many IPOs occurred in 2014?
A: Approximately 275 IPOs occurred in the U.S. market, raising nearly $85 billion, according to Renaissance Capital.
Q4: Were 2014 IPOs generally successful?
A: It varied. Some, like Alibaba and Zendesk, performed well. Others, like LendingClub, faced significant challenges post-IPO.
Q5: Why did so many companies go public in 2014?
A: A combination of strong market performance, high investor interest, and improved economic conditions contributed to the IPO surge.
Q6: Are any of the 2014 IPO companies still public today?
A: Yes, several are still public, including Alibaba, El Pollo Loco, and STORE Capital (prior to acquisition offers).
Conclusion
The class of companies that had their IPO in 2014 offers a fascinating study in market dynamics, investor psychology, and business evolution. From monumental successes like Alibaba to the cautionary tales of GoPro and LendingClub, 2014 remains a pivotal year in IPO history. As we assess future IPO waves, the lessons and legacies from 2014 will continue to guide investors, founders, and policymakers alike.
Would you like a comparison table of IPO performance for the top companies in 2014?
