QUIZ: Notable IPO's
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How much do you know about some of the more notable IPO's in investing history? Take our quiz and find out.
Posted 26 July 2010
In what country did the largest IPO of all time take place?
- China
- England
- Saudi Arabia
- United States
In October 2006, the Industrial and Commercial Bank of China went public. In a move that surely had Mao Tse-Tung spinning in his grave, the bank sold $21.9 billion of stock in its initial public offering, a record haul that looks as though it will be beaten out by yet another Chinese financial institution, the Industrial and Commercial Bank of China. This bank sold over $19 billion worth of stock at an IPO in Hong Kong and Shanghai, and their take could exceed $22 billion if its overallotment options are exercised as expected.
What hotel chain listed shares from its 2009 IPO under the symbol "H" on the New York Stock Exchange?
- Hilton
- Holiday Inn
- Howard Johnson's
- Hyatt
With the recession fully underway and "stay-cations" growing in popularity, the hotel business took a huge hit in 2009. For the Hyatt Hotel chain, this situation was made even worse when the family of founder Jay Pritzker broke up their empire amid allegations of fraud and embezzlement. An IPO seemed to be the logical way to raise much needed capital and keep the chain afloat, so in August 2009, the hotel dynasty announced plans to put over $1 billion in shares on the New York Stock Exchange, under the symbol "H."
What nutritional supplement retailer raised $155 million in its October 2009 IPO?
- General Nutrition Centers
- Nature's Bounty
- Vitamin Shoppe
- Whole Foods
Vitamin Shoppe raised approximately $155 million in its October 2009 initial public offering. The IPO was notable as it was the first such offering from a traditional, "brick-and-mortar" retailer in almost two full years. The last one had taken place when the farm and construction equipment retailer Titan Machinery sold shares of its stock in December 2007.
How much did one share of Google stock cost at its 2004 initial public offering?
- $65
- $75
- $85
- $95
The technology giant Google went public on August 19, 2004, with a stock price of $85 per share. This point was reached after the company made a series of missteps, right up until the eleventh hour. According to paperwork filed in the run-up to the IPO, the company revealed that they might have improperly allocated 23 million shares to its employees and consultants, a serious violation of securities law. Also, on the day before the stock went public, the company was forced to cut its stock price by $50 from its original $135 sticker price, due to lack of demand.
What food company announced plans to raise as much as $500 million in a 2009 IPO?
- Del Monte
- Dole
- Perdue
- Purina
The Dole Food Company announced plans for an initial public offering in 2009, to be managed by such financial firms as Goldman Sachs and Bank of America. In their filing with the Securities and Exchange Commission, they announced their intention to raise as much as $500 million with the sale. Dole claims to be the world's largest produce company, and if that were not enough, they also boast the great distinction of being listed in the 2001 Guinness Book of World Records on the merits of the pineapple maze at their Hawaii plantation, the largest maze in the world.
How much did the Rosetta Stone software company raise in the first day of its initial public offering in April 2009?
- $50 - $100 million
- $100 - $200 million
- $200 - $300 million
- $300 - $400 million
Rosetta Stone went public on Wednesday, April 15, 2009. By Thursday, the Virginia-based language software company had raised $112.5 million. At approximately $18 per share, it was the first IPO in a year to price above expectations, and was the third company to go public that April, marking the best month in the IPO market since the previous July.
What company's 2008 IPO was the largest in United States history?
- Citigroup
- ExxonMobil
- Visa, Inc.
- Wells Fargo
In March 2008, the outlook for markets seemed bleak. The esteemed Bear Sterns had just been sold to JPMorgan Chase for a song, which was an ominous harbinger of financial troubles to come later in the year. In this climate, Visa, Inc. announced its initial public offering with a cocky swagger. At $17.9 billion, it would be the largest IPO in United States history, but the price tag was not the only reason that it had a lot riding on it. In an article in "Fortune" magazine written just prior to the sale, financial experts said that the IPO was nothing less than a gut-check of financial confidence during an uncertain time. "This market is so damaged that this IPO performance will be a test of investor courage to put new money into equities," said Kathy Smith of IPO research firm Renaissance Capital.
AirTran Holdings was formed when AirTran AirWays was acquired by what airline in a reverse IPO?
- Horizon Air
- Jet Blue
- Southwest
- ValuJet
In May 1996, ValuJet Flight 592 crashed in the Florida Everglades after a fire broke out in the cargo hold. Afterwards, the airline's name was permanently associated with the fatal accident, so when AirTran Airways offered to be acquired by them, the disgraced airline jumped at the chance to rebrand itself. Since then, the airline has operated under the name AirTran Airlines, and according to their investor relations overview, it "has been ranked the number one low cost carrier in the Airline Quality Rating study for the past three years."
Tesla Motors went public on June 29, 2010, making it the first American automobile maker to go public in how many years?
- 44
- 54
- 64
- 74
The equities market may be weak right now, but one Silicon Valley electric car manufacturer's IPO exceeded expectations, if only briefly. Tesla Motors, the first US car maker to go public in 54 years, saw its stock open on June 29, 2010 at $19 per share, exceeding its offer price by 12%. It even enjoyed a short rally at $25 per share. The shares closed at $23.89, an increase of over 40%, which is really not bad for a company that has yet to turn one dime of profit. Unfortunately, one week later, the stock price plunged and eventually hit a low of $15.83 per share.
What lingerie company acquired a women's sleepwear company in a reverse IPO?
- Frederick's of Hollywood
- Maidenform
- Playtex
- Victoria's Secret
FOH Holdings, the parent company of Frederick's of Hollywood, acquired the women's sleepwear company Movie Star in 2006. This caused the acquired company's stock to rise 28% on the Stock Exchange, but the real benefit went to Frederick's of Hollywood shareholders, who received shares of the new Movie Star stock worth over $30 million.
Your score:
- Everybody wants to get in on the ground floor of your IPO.
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