Behind the scenes: Stories behind the 6 biggest global IPOs of all time

An Initial Public Offering (IPO) is a significant moment for any company. It is the process through which a private company offers its shares to the public for the first time and becomes a publicly traded entity. IPOs are often used to fund expansion, pay off debt, or enhance market visibility.

Over the years, numerous IPOs have been launched and have seen varying outcomes. Some achieved massive success, others fell short of expectations, and a few even sparked controversies. Among the many IPOs in history, a few gained immense global attention and shaped the business world in significant ways.

This analysis covers the six largest IPOs and the stories behind their transformative journeys.

1. Saudi Aramco

Saudi Aramco made history in December 2019 by launching the largest IPO in the world ever. It raised $25.6 billion, which later increased to $29.4 billion through the sale of additional shares. This oil giant engages in the exploration, production, transportation, and sale of crude oil and natural gas.

By listing on the domestic stock exchange, Aramco reflected Saudi Arabia's ambition to attract global investors while funding Vision 2030. This initiative aimed to diversify the kingdom's economy away from oil dependency. The huge profitability of Aramco's IPO attracted global attention and strengthened its status as one of the world’s most valuable companies. This IPO shows how a well-timed strategy and leveraging market interest could set new benchmarks for capital raising and economic transformation.

2. Alibaba Group

Founded by Jack Ma, this Chinese e-commerce titan chose the New York Stock Exchange (NYSE) over domestic exchanges. It raised $25 billion , with shares soaring by 38% on the first trading day. Although it shattered all previous records, it was eventually surpassed by Saudi Aramco, becoming the second-biggest IPO in the world.

By the time of its public debut, i.e., September 2014, Alibaba had already revolutionised China's retail landscape with platforms like Taobao and Tmall. The IPO's success highlighted the increasing appetite of global investors for tech-driven opportunities in emerging markets.

By choosing NYSE over China's domestic exchanges, Alibaba emphasised its commitment to reaching international investors and establishing a global presence. The IPO itself was meticulously planned – Alibaba spent months wooing investors, including a multi-week global roadshow. Jack Ma redefined the company from an e-commerce firm to a dynamic ecosystem uniting retail, cloud computing, and digital payment services.

3. SoftBank Group Corp.

SoftBank, headquartered in Tokyo, is a leading provider of communication services. It offers mobile and fixed-line connectivity along with Internet Service Provider (ISP) solutions. The company also sells a range of mobile devices to its consumer base.

SoftBank's IPO raised more than $21 billion to become one of the largest IPOs in history. However, the IPO was not without controversy. Shares dropped by over 14% on the first trading day due to major service outages and its exposure to Chinese telecom giant Huawei.

Despite the rocky start, the IPO provided SoftBank with much-needed capital to support its Vision Fund, reduce its debt burden, and get flexibility for future investments.

Read More: Process of IPO in India - 9 Easy Steps

4. NTT Mobile Communication Network, Inc., (NTT DoCoMo)

In October 1998, NTT DoCoMo went public and raised more than $18 billion . This Japanese company strategically launched its IPO during a critical phase in the telecommunications industry and became a symbol of resilience during the 1997 Asian financial crisis. Despite these challenges, the IPO attracted significant investor interest, aided by the backing of underwriters like Goldman Sachs.

At the time of its IPO, NTT controlled approximately 57% of Japan's cellular telephone market. The proceeds from the IPO helped the company upgrade its network, invest in new mobile technologies, and maintain its lead in Japan's booming telecom sector.

In April 2018 , NTT delisted its American Depositary Shares (ADS) from the NYSE. However, the company still remains a key player in Japan's telecommunications industry.

5. Visa Inc.

Visa's $17.9 billion IPO came at a time of economic uncertainty i.e., in 2008. However, Visa's business model, i.e., relying on transaction fees rather than lending, made it an attractive investment. The IPO was a success, with shares rising by 28% on the first day.

Visa's IPO was driven by its ambition to expand globally and capitalise on the rapid shift from cash-based transactions to digital payments. The company offered a unique infrastructure that connected consumers, merchants, and financial institutions through a seamless payment network. By going public, Visa raised critical funds to improve its technology, scale its operations, and strengthen its market presence.

The timing of this IPO was risky. However, the strategy succeeded and made it one of the largest and most successful IPOs in history.

6. AIA Group Ltd.

AIA Group, a prominent insurance and financial services provider in Asia, made history with its groundbreaking IPO in 2010. This Hong Kong-based company raised $17.8 billion . This success highlighted the huge potential of Asian markets and the growing demand for insurance products in the region.

Before the IPO, AIA was part of American International Group Inc (AIG), a giant US company hit hard by the 2008 financial crisis. AIG, seeking to reduce debt, divested its stake in AIA. Initially, Prudential PLC sought to acquire AIA for $35.5 billion, but the deal fell through. So, AIA decided to go public, and the IPO was a massive success.

The IPO's success reflected investor confidence in AIA's market leadership, robust growth potential in Asia, and diversified offerings (e.g., life insurance, health insurance, etc).

Read More: Know About the Recently Listed IPO Issue Price Details

Key takeaways

The stories behind these 6 biggest IPOs of all time show the transformative power of public offerings. These companies – Saudi Aramco, Alibaba, SoftBank, NTT DoCoMo, Visa Inc., and AIA Group – leveraged their IPOs to fund innovation, expand globally, and strengthen their market dominance. Each IPO reflects unique strategic decisions, from Saudi Aramco's focus on national economic transformation to Alibaba's ambition to connect East and West.

Together, these IPOs set benchmarks and offer lessons for future businesses aspiring to utilise the power of IPOs to achieve revolutionary growth.