The year 2016 marked a significant period in the stock market, with numerous companies making their initial public offerings (IPOs).

These companies that had their IPO in 2016 not only shaped the financial landscape but also introduced innovative technologies and services to the public market.

This comprehensive analysis delves into the most prominent IPOs of 2016, their performance, and their lasting impact on various industries.

Top Companies That Went Public in 2016: A Year of Prominent IPOs

Line Corporation: Messaging Giant’s Market Entry

Line Corporation, the Japanese messaging app giant, made waves with its dual listing on the New York Stock Exchange and Tokyo Stock Exchange in July 2016. This IPO was one of the year’s most anticipated, given Line’s dominance in Asian markets. The company raised approximately $1.3 billion, making it the largest tech IPO of 2016.

Key facts about Line’s IPO:

• Dual listing date: July 14, 2016
• Initial price: $32.84 per ADS (NYSE)
• First-day closing price: $41.58 (26.6% increase)
• Funds raised: $1.3 billion

Line’s successful IPO highlighted the growing importance of messaging platforms in the tech ecosystem. The company’s strong user base in Japan, Thailand, Taiwan, and Indonesia proved attractive to investors looking for exposure to Asian tech markets.

Line’s unique blend of messaging, social media, and e-commerce features set it apart from Western competitors, showcasing the potential for region-specific social platforms to thrive globally.

Twilio: Cloud Communication Platform’s Public Debut

Twilio, a cloud communications platform, made its stock market debut on June 23, 2016. The company’s IPO was particularly noteworthy as it broke a dry spell in the tech IPO market and exceeded expectations.

Twilio’s IPO details:

• Listing date: June 23, 2016
• Initial price: $15 per share
• First-day closing price: $28.79 (91.9% increase)
• Funds raised: $150 million

Twilio’s strong performance on its first trading day signaled renewed investor confidence in tech IPOs. The company’s platform, which allows developers to integrate voice, video, and messaging capabilities into their applications, positioned it at the forefront of the communications-as-a-service sector.

Twilio’s success demonstrated the market’s appetite for B2B tech companies with scalable, cloud-based solutions that enable digital transformation across industries.

Nutanix: Hybrid Cloud Provider’s Stock Market Launch

Nutanix, a leader in hyperconverged infrastructure solutions, went public on September 30, 2016. The company’s IPO was closely watched due to its innovative approach to cloud computing and storage.

Nutanix IPO highlights:

• Listing date: September 30, 2016
• Initial price: $16 per share
• First-day closing price: $37 (131.3% increase)
• Funds raised: $238 million

Nutanix’s impressive first-day performance underscored the market’s enthusiasm for cloud computing solutions. The company’s hybrid cloud approach, which combines on-premises infrastructure with public cloud services, resonated with enterprises seeking flexible and efficient IT solutions.

Nutanix’s IPO success highlighted the growing trend of businesses adopting multi-cloud strategies and the increasing importance of software-defined infrastructure in modern data centers.

2016 IPO Highlights: Notable Companies That Made Their Stock Market Debut

ZTO Express: Chinese Logistics Firm’s U.S. Listing

ZTO Express, a major Chinese logistics company, chose to list on the New York Stock Exchange on October 27, 2016. This IPO was significant not only for its size but also for representing the growing trend of Chinese companies listing in the U.S.

ZTO Express IPO details:

• Listing date: October 27, 2016
• Initial price: $19.50 per ADS
• First-day closing price: $16.57 (15% decrease)
• Funds raised: $1.4 billion

Despite the first-day drop, ZTO’s IPO was the largest U.S. listing by a Chinese company in 2016. The company’s growth was closely tied to the booming e-commerce sector in China, particularly its partnership with Alibaba’s Tmall and Taobao platforms.

ZTO’s IPO highlighted the interconnectedness of global markets and the increasing influence of Chinese tech and logistics companies on the world stage.

Trivago: Travel Search Engine’s Market Entry

Trivago, the German hotel search platform, made its public debut on the NASDAQ on December 16, 2016. As a spin-off from Expedia, Trivago’s IPO was closely watched by investors interested in the online travel sector.

Trivago IPO highlights:

• Listing date: December 16, 2016
• Initial price: $11 per share
• First-day closing price: $11.85 (7.7% increase)
• Funds raised: $287 million

Trivago’s IPO performance was modest compared to some tech peers, but it successfully positioned the company for future growth in the competitive online travel market.

Trivago’s public offering underscored the ongoing digital transformation of the travel industry and the increasing importance of price comparison tools for consumers.

The company’s unique metasearch model, which aggregates hotel prices from various booking sites, offered a differentiated approach in the crowded online travel agency (OTA) space.

Coupa Software: Spend Management Platform Goes Public

Coupa Software, a cloud-based spend management platform, went public on October 6, 2016. The company’s IPO was notable for its strong performance and the growing interest in enterprise software solutions.

Coupa Software IPO details:

• Listing date: October 6, 2016
• Initial price: $18 per share
• First-day closing price: $33.28 (84.9% increase)
• Funds raised: $133 million

Coupa’s successful IPO highlighted the market’s appetite for cloud-based enterprise solutions that promise cost savings and efficiency improvements.

The company’s platform, which helps organizations optimize their spending and procurement processes, tapped into the growing trend of digital transformation in finance and operations departments.

Coupa’s strong debut demonstrated investor confidence in SaaS (Software-as-a-Service) business models and the potential for AI-driven analytics to revolutionize traditional business processes.

A Look Back: Major Companies That Had Their IPO in 2016

Atlassian: Collaboration Software Giant’s Public Offering

While Atlassian technically went public in December 2015, its impact was largely felt in 2016. The Australian software company, known for products like Jira and Confluence, took an unconventional approach to its IPO.

Atlassian’s unique IPO approach:

• No traditional roadshow
• Fixed price offering
• Initial price: $21 per share
• First trading day in 2016: January 4, 2016
• Closing price on January 4, 2016: $26.53

Atlassian’s successful public offering without a typical roadshow challenged the conventional wisdom about tech IPOs and set the stage for a strong performance throughout 2016.

The company’s focus on team collaboration tools and its land-and-expand business model resonated with investors, particularly as remote work trends began to accelerate.

Atlassian’s IPO success story highlighted the potential for enterprise software companies to thrive in the public markets, even with unconventional approaches to going public.

PharmaCyte Biotech: Biotech Innovator’s Market Entry

PharmaCyte Biotech, a clinical-stage biotechnology company focusing on diabetes and cancer treatments, began trading on the NASDAQ on January 4, 2016.

While smaller than some other IPOs, PharmaCyte’s public offering represented the ongoing interest in innovative biotech firms.

PharmaCyte Biotech IPO details:

• Listing date: January 4, 2016
• Initial price: $4.25 per share
• Funds raised: Approximately $3.5 million

The company’s focus on developing treatments using its Cell-in-a-Box technology platform garnered attention from investors interested in novel approaches to challenging medical conditions.

PharmaCyte’s IPO underscored the continued appetite for early-stage biotech companies with potentially groundbreaking technologies, despite the inherent risks associated with clinical-stage drug development.

Acacia Communications: Optical Interconnect Products’ Debut

Acacia Communications, a leader in high-speed coherent optical interconnect products, went public on May 13, 2016. The company’s IPO was significant for the telecommunications and data center industries.

Acacia Communications IPO highlights:

• Listing date: May 13, 2016
• Initial price: $23 per share
• First-day closing price: $30.95 (34.6% increase)
• Funds raised: $103.5 million

Acacia’s strong debut reflected the growing demand for high-speed data transmission solutions in an increasingly connected world. The company’s coherent optical technology played a crucial role in enabling faster and more efficient data transfer across long-distance fiber optic networks.

Acacia’s IPO success highlighted the critical importance of network infrastructure companies in supporting the global digital economy and the increasing data demands of cloud computing, 5G networks, and Internet of Things (IoT) applications.

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2016 IPO Stars: Companies That Made Waves in the Stock Market

Cotiviti Holdings: Healthcare Analytics Firm’s Public Launch

Cotiviti Holdings, a provider of payment accuracy and analytics-driven solutions for the healthcare sector, went public on May 26, 2016. The company’s IPO highlighted the growing importance of data analytics in healthcare.

Cotiviti Holdings IPO details:

• Listing date: May 26, 2016
• Initial price: $19 per share
• First-day closing price: $21.99 (15.7% increase)
• Funds raised: $237.5 million

Cotiviti’s successful IPO underscored investor interest in companies addressing healthcare inefficiencies through technology and data analytics.

The company’s solutions, which help healthcare payers and providers improve financial performance and reduce waste, tapped into the growing trend of digitization in the healthcare industry.

Cotiviti’s public offering demonstrated the market’s recognition of the critical role that data-driven insights play in managing the complex U.S. healthcare system.

Impinj: RFID Solutions Provider’s Stock Market Entry

Impinj, a provider of RFID solutions, made its public debut on July 21, 2016. The company’s IPO was notable for its focus on Internet of Things (IoT) technologies.

Impinj IPO highlights:

• Listing date: July 21, 2016
• Initial price: $14 per share
• First-day closing price: $18.11 (29.4% increase)
• Funds raised: $67.2 million

Impinj’s strong performance reflected growing investor enthusiasm for IoT-related companies and the potential of RFID technology in various industries.

The company’s solutions, which enable wireless connectivity for everyday items, positioned it at the forefront of the IoT revolution.

Impinj’s IPO success highlighted the market’s recognition of the transformative potential of IoT technologies across sectors such as retail, healthcare, and logistics.

Tactile Systems Technology: Medical Device Maker’s Debut

Tactile Systems Technology, now known as Tactile Medical, went public on July 28, 2016. The company specializes in at-home therapy devices for lymphedema and chronic venous insufficiency.

Tactile Systems IPO details:

• Listing date: July 28, 2016
• Initial price: $10 per share
• First-day closing price: $12.50 (25% increase)
• Funds raised: $40 million

The successful IPO of Tactile Systems highlighted investor interest in medical device companies focusing on chronic condition management and at-home care solutions. The company’s innovative approach to treating lymphedema and related disorders resonated with both patients and healthcare providers.

Tactile Systems’ public offering underscored the growing trend of shifting certain medical treatments from clinical settings to patients’ homes, improving both quality of life and healthcare efficiency.

The Biggest IPOs of 2016: Companies That Caught Investor Attention

BATS Global Markets: Stock Exchange Operator Goes Public

BATS Global Markets, a major stock exchange operator, went public on April 15, 2016. This IPO was particularly notable given BATS’ role in the financial markets.

BATS Global Markets IPO highlights:

• Listing date: April 15, 2016
• Initial price: $19 per share
• First-day closing price: $23.77 (25.1% increase)
• Funds raised: $252.7 million

BATS’ successful IPO underscored the evolving landscape of stock exchanges and electronic trading platforms. As a technology-driven exchange operator, BATS represented the ongoing digital transformation of financial markets.

The company’s public offering highlighted the increasing importance of high-speed, low-latency trading infrastructures in global finance.

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US Foods Holding: Food Distributor’s Market Entry

US Foods Holding, one of the largest foodservice distributors in the United States, made its public debut on May 26, 2016. This IPO was significant for the food service industry.

US Foods IPO details:

• Listing date: May 26, 2016
• Initial price: $23 per share
• First-day closing price: $24.91 (8.3% increase)
• Funds raised: $1.02 billion

The successful IPO of US Foods reflected investor confidence in the stability and growth potential of the food distribution sector. As a major player in the foodservice industry, US Foods’ public offering provided insights into the broader food supply chain and the ongoing consolidation in the sector.

The company’s focus on technology-driven solutions for restaurants and foodservice operators aligned with the growing trend of digitization in the food industry.

MGM Growth Properties: Real Estate Investment Trust Debut

MGM Growth Properties, a real estate investment trust (REIT) focused on casino properties, went public on April 20, 2016. This IPO was notable in the REIT sector.

MGM Growth Properties IPO highlights:

• Listing date: April 20, 2016
• Initial price: $21 per share
• First-day closing price: $22.01 (4.8% increase)
• Funds raised: $1.05 billion

The IPO’s success highlighted investor interest in REITs associated with the gaming and hospitality industries. MGM Growth Properties‘ focus on high-quality casino and resort properties offered investors exposure to the growing leisure and entertainment sector.

The company’s public offering underscored the trend of large gaming companies separating their real estate assets into standalone REITs to unlock value and provide more focused investment opportunities.

How These Companies Fared After Their 2016 IPOs?

Short-term Performance Analysis

In the six months following their IPOs, the performance of these companies varied:

1. Twilio: Showed strong growth, with share prices more than doubling
2. Line Corporation: Experienced moderate growth, maintaining above its IPO price
3. Nutanix: Demonstrated volatility but remained well above its IPO price
4. ZTO Express: Struggled to maintain its IPO price, facing investor skepticism

Factors influencing early performance included:

• Market conditions and sector trends
• Quarterly earnings reports
• Analyst coverage and recommendations
• Broader economic factors

The diverse performance of these newly public companies highlighted the challenges and opportunities faced by businesses transitioning to public markets. While some, like Twilio, quickly gained investor confidence, others like ZTO Express faced initial hurdles in meeting market expectations.

Long-term Growth and Market Position

Five years post-IPO, the landscape for these companies had significantly evolved:

1. Twilio: Emerged as a leader in cloud communications, with substantial market cap growth
2. Nutanix: Established itself as a key player in hybrid cloud solutions
3. Coupa Software: Expanded its market share in spend management solutions
4. Acacia Communications: Acquired by Cisco Systems in 2021, validating its technology

Changes in market capitalization (2016 vs. 2021):

Company	IPO Market Cap	5-Year Market Cap	Growth
Twilio	$1.2B	$67B	5483%
Nutanix	$2.2B	$7.5B	240%
Coupa	$1.2B	$20B	1567%

The long-term success of many companies that had their IPO in 2016 demonstrated the potential for innovative tech firms to achieve significant growth post-IPO. These companies not only expanded their market presence but also played pivotal roles in shaping their respective industries.

Lessons Learned from 2016 IPOs

Success factors for well-performing IPOs included:

• Strong revenue growth pre- and post-IPO
• Clear path to profitability
• Innovative technology or business model
• Effective management teams

Common challenges faced by newly public companies:

• Meeting quarterly earnings expectations
• Scaling operations to meet public company demands
• Navigating increased regulatory scrutiny
• Managing investor relations and market perceptions

The experiences of companies that went public in 2016 provided valuable insights for future IPO candidates and investors. These lessons underscored the importance of solid fundamentals, innovative products or services, and effective market positioning in achieving long-term success as a public company.

Conclusion

In conclusion, the companies that had their IPO in 2016 represented a diverse range of industries and technologies, from messaging apps and cloud communications to biotech and optical networking. These IPOs not only raised significant capital but also brought innovative solutions to the public markets, setting the stage for future growth and technological advancements.

The success of many of these IPOs demonstrated investor confidence in disruptive technologies and scalable business models, particularly in the realms of cloud computing, enterprise software, and digital communications.