What are some of the companies that had their IPO in 2007? High-tech initial public offerings (IPOs) rebounded strongly in 2007 after a couple of sluggish years. In a year when server virtualization was all the rage, EMC’s spinoff of 10% of its virtual machine business VMware was appropriately the most profitable IPO of the year. Being public might sound great, but being a new public company is not. Being a public company comes with the limelight and scrutiny from an insane number of shareholders, the online community, and investors. We have put together a list of famous companies that had their IPO in 2007.
8 Companies That Had Their IPO in 2007
The year 2007 was a tough one for the stock market, but it also saw some of the biggest IPOs in history. The following eight companies had their IPO in 2007, and all but one have performed well since then. Here are the eight companies that had their initial public offerings in 2007:
Nearly $957 million was raised in VMware’s August IPO, and EMC only spun off 10% of the server virtualization business it had acquired in 2004 for $625 million. The VMware stock debuted at $52 the morning after its IPO priced at $29 and climbed to $125.25 in late October before plummeting to $83.05 on December 31. The best tech IPO since Google garnered $1.67 billion three years earlier saw an almost threefold gain in share price within four months of the coming public. VMware is still riding the wave of server virtualization; its quarterly revenue of $358 million was up 90 percent from the prior year, and its net profit of $85 million increased by 71 percent.
The last and most intriguing initial public offering of 2007 was done by NetSuite. A model of an auction was adopted by the provider of online accounting systems owned by Oracle CEO Larry Ellison. On December 20, it priced shares at $26, above the $19 to $22 target it had set after two upward revisions. The stock rose to $39.14 at the end of its first day of trading after the IPO, which produced $161.2 million. On December 31, it began at $40.16.
However, NetSuite isn’t yet profitable, in contrast to VMware. On $67.2 million in sales, it lost $35.7 million in 2006. For the first nine months of this year, NetSuite lost $20.6 million, bringing its total loss to $241.6 million prior to the IPO.
3. Data Domain
Data deduplication was a popular technique when Data Domain went public, similar to how VMware did. Despite giving 390,000 shares to competitor Quantum as part of a cross-licensing arrangement, the IPO price of $15 in June surpassed its objective of $11.50 to $13.50 and raised $94.2 million. Shares peaked at $41.14 in October and started trading at $26.11 on December 31. Although its revenue increased by 189 percent year over year to $32 million last quarter, unlike VMware, Data Domain was not a cash cow prior to going public and has yet to break even. As a result, it lost $880,000 last quarter.
A travel metasearch engine and fare aggregator website is called Orbitz.com. Orbitz Worldwide, Inc., a division of Expedia Group, is the website’s owner. Its main office is located in Chicago, Illinois, at the Citigroup Center. In May 2007, Travelport disclosed that it had registered with the U.S. Securities and Exchange Commission to sell a piece of Orbitz Worldwide in an IPO (IPO).
Travelport stated that it intended to use some of its earnings to reduce its debt. The IPO transaction was completed on July 25, 2007, after trading had started on July 20. Before the IPO, Travelport held around 48% of Orbitz Worldwide. Expedia launched in February 2015 that it would buy Orbitz for $1.2 billion cash.
On July 3, some explosions signaled the opening of VOIP provider ShoreTel’s IPO. On June 27, it first set a price of $10.50, but the IPO was postponed after rival Mitel accused ShoreTel of violating a patent. In the end, ShoreTel raised $86.3 million by pricing its IPO on July 3 at $9.50, which was at the midpoint of its target range. Stocks of ShoreTel hit a high of 19.96 in late October before falling to $12.95 on December 31.
It closed its first day as a publicly traded corporation at $12.15. ShoreTel reported a net loss of $2.6 million, up from $1.85 million for the comparable quarter last year, and sales of $32 million, a rise of 57% over the same period last year.
Compellent, a provider of midrange storage systems, had a successful first day after going public in October. It raised almost $85 million at an IPO price of $13.50, exceeding the estimated range of $10 to $12. Shares reached $24.19 before the end of the first day. But the price dropped significantly when it touched $11.60 in late November before gradually increasing to $12.25 on December 31. The peak of $24.96 also occurred on the first day. Compellent has not yet turned a profit, and its $13.4 million in income last quarter, an increase of 112% from the previous year, resulted in a $2 million loss.
A multinational business called BrainsWay is working to create a medical device that employs deep transcranial magnetic stimulation with an H-coil as a non-invasive treatment for depression, OCD, and smoking addiction. With headquarters in the US and Jerusalem, the business was established in 2003. In 2006, the company completed its first clinical trial evaluating safety at Tel Aviv University and carried out animal investigations at the Weizmann Institute of Science.
Early in 2007, BrainsWay carried out a Tel Aviv Stock Exchange IPO, raising 33 million shekels for a market worth of 110 million. BrainsWay announced plans to offer the company’s stock on the Nasdaq exchange in 2010 but then withdrew them in June.
8. Networks Cavium
Above its goal range of $12 to $13, Cavium Networks’ initial public offering price was $13.50. With its May IPO, the manufacturer of semiconductors for security devices generated more than $91 million. The share price of Cavium increased to $35.60 in September before progressively declining to $23.47 on December 31 – still significantly more than its IPO price. Cavium entered the black for the first time last quarter, making $1.3 million on $14.2 million in income, up from $9.2 million the year before.
With its March IPO, Sourcefire benefited from IT’s the priority on security. The network intrusion detection company raised $86.3 million by pricing its IPO at $15, which was more than its $12 to $14 aim. Sourcefire’s sales for the most recent quarter were $14.8 million, up 36 percent from the same period last year despite a $2.8 million loss. The price of Sourcefire dropped and started at $8.69 on December 31 reaching a high of $18.83 a week after its IPO.
A lot of people are still smarting from the recession that occurred between 2007 and 2012. That’s why it’s worth looking back to see what companies actually went public during that time period. After all, some of these companies may very well be producing some good investment opportunities right now. And if you’re short on investing funds, you can always follow the lead of some of these companies by going public yourself.