So far, 2020 has been an earth-shattering time for IPOs. There have been 343 IPOs in the U.S. stock market alone from January 1 to October 27, 2020. The number of IPOs is 76.8 percent more than the same time last year, which shows that the public market has a lure no one can seem to deny. Also, IPOs are just getting bigger on a global scale. To date, what are the five biggest IPOs of all time?
1. Ant Group - $34 billion
On Oct. 27, Ant Group's billionaire founder Jack Ma announced the company's official IPO price of $34 billion. Ant Group is the biggest IPO of all time. The Chinese fintech company will list on the Hong Kong Stock Exchange at 80 Hong Kong dollars or $10.32 per share as well as the Shanghai-based Star Market at 68.8 yuan or $10.26 per share.
Ant Group is snubbing U.S. markets, likely in response to increased oversight of Chinese businesses that trade stock on the U.S. public market.
ANT GROUP IPO. Biggest IPO of all time. In such hot demand they are letting investors buy stock offering with 20x leverage for a fee of 10% of trade profits in first 5 days.— Rigger965 (@Rigger965) October 27, 2020
2. Alibaba Group - $25 billion
Ant Group may be the latest and greatest IPO around, but it's actually Jack Ma's second IPO. Alibaba Group Holdings was Ma's first IPO. Alibaba Group Holdings, a Chinese e-commerce business, is second on our list of the biggest IPOs ever.
Alibaba ("BABA" on the NYSE) went public in September 2014. Originally, the IPO was valued at $21.8 billion. However, four days after its market debut, the company's underwriters sold additional shares, which increased the IPO total by $3.2 billion.
3. AgBank - $22.1 billion
The Agricultural Bank of China Ltd. is the third biggest IPO of all time due to its $22.1 billion size. As one of China's "big four" banks, the IPO started out in July 2010 as a $19.2 billion offer.
Like Alibaba's underwriters boosted the IPO's value, AgBank's capital rose to $22.1 billion due to belated share sales.
4. ICBC - $21.9 billion
ICBC (Industrial and Commercial Bank of China) is another big four bank. In fact, ICBC is the world's biggest multinational bank corporation. The bank went public in October 2006 with a value of about $19.1 billion.
The numbers increased by $2.8 billion because ICBC exercised its right to an over-allotment option, sometimes referred to as a greenshoe option. Underwriters can sell more shares than originally planned if market demand deems it appropriate.
5. General Motors - $20.1 billion
Currently, General Motors ("GM" on the NYSE) is the biggest IPO of a U.S. company. Also, it's the only non-Chinese company on the top five IPO list.
General Motors went public in November 2010 just one year after the company filed for bankruptcy—a move that made history as the largest industrial bankruptcy ever. In this case, it looks like the $20.1 billion IPO saved more than the day.