Read through to learn about the Biggest IPOs Flops in History. They were the IPO’s once considered to be hot and people bet on their successes but unfortunately market conditions, investor sentiments and various other factors caused their demise.

1. Biggest IPOs Flops in History

2. • IPO or “Initial Public Offering” is where a private firm decides to
transform itself into a public one.
• Companies go for IPO’s mainly to infuse cash in their capital
structure for proposed expansion, increase their market share, and
give a push to their profits.
• A significant amount of planning goes into getting the IPO into
reality and many times in the past there have been disastrous IPO
cases that were launched only to be dished out within some time.

3. IPO Flop- Vonage
• Vonage is a voice over IP network and Session
Initiation Protocol (SIP) Company that offers
telephone service via a broadband connection.
• Due to huge losses in 2006 they decided to go
public for required capital infusion.
• Vonage decided to offer 13.5% of the IPO shares
to its customers. But strangely this tech
company was caught up in a technical glitch.
• Shares were offered at $17 per share but quickly
rushed 12.7% within the day to close at $14.85.

4. IPO Flop- Pets.com
Pets.com was a company based in San Francisco
that sold pet products online.
• They had tough time generating profits for their online pet supply as customers
didn’t seem keen in waiting for their pet foods or other things to arrive.
• They were selling products at a cost less than it took to produce them and also
undercharged shipping costs.
• They went public in February 2000 and raised $82 million!
• The share price started at $11 per share elevated to $14 but the success was short
lived and it crashed at meager 22 cents.

5. IPO Flop- Webvan
• Webvan had a great unique idea of delivering
groceries without you having to carry the heavy
grocery bags and take the pains to take them
back home.
• With the IPO in 1999 they raised a good enough
$375 million and the stock price doubled on the
first day itself.
• The great idea lost its charm against the
whopping logistics cost it had to bear.
• Just after 18 months of its flaring IPO it
declared bankruptcy

6. • VeraSun Energy was known as a leading producer of
renewable fuel and one of the topmost producers of
ethanol during the ethanol boom.
• Verasun went public and successfully raised $420 million
in June 2006
• Market for ethanol production completely sunk with the
number of competitors and the rush in the price of corn
during recession diminished the demand for ethanol.
• Within two years the company filed for bankruptcy .
IPO Flop- VeraSun

7. • Shanda Games is a huge name in online gaming
market of China.
• Shanda decided to go for an U.S. IPO in 2009 and
raised an extraordinary $1.04 billion.
• Inappropriately greedy underwriters had actually
pushed the share price at a limit of $12.50.
• It attracted investors who were ready to pay the top
dollar. But since there were no new investors left
later the stock price hit the bottom falling 14% in
value to $1.75 the very next day.
IPO Flop- Shanda Games

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ipos-flops-in-history/

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