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Initial Public Offering Made Netscape an Internet Browser Giant
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IPO.
Single acronym, yet with different meanings and applications.
It may stand for intellectual property ownership. It may also stand for the Instituto Portugues de Oncologia or the Portuguese Oncology Institute which is situated at the University of Porto in Portugal. It may probably refer to the Israel Philharmonic Orchestra which is one of the leading symphonic orchestra in Israel and one of the best-performing orchestra around the world.
However, when you are talking about the IPO in the world of finance, it only spells three distinctive words.
Initial public offering.
Initial public offering or referred to by its acronym IPO, is basically the first sale of a company’s common stocks to the public, which is why it is called “company that will go on public”. One of the major reasons why companies go on public is to raise additional capital that will be used to sustain their operational expenses. Although companies undergoing the IPO process must adhere to the heavy legal requirements imposed by the governing laws and authorities, IPO is considered to be an effective method in raising additional capital for a company.
Typically, an IPO process involves several investment banks that will act as the underwriters for the deal. The company will enter an agreement with a lead underwriter that will facilitate the public issuance of their common shares to the public. The issuer (or the company issuing the common shares) must draft a prospectus that will show the details of the company’s background, history, products, operations, industry environment, and other related factors.
Such prospectus will be submitted to the U.S. Securities and Exchange Commission (SEC) for approval. Once approved, the price of the common shares will be finalized, and the IPO will now be on the “free riding period” wherein the shares will be offered to the public in different ways.
In most cases, newly-formed and not well-known companies are the ones involved in the IPO process. However, there are large corporate organizations that go on public to further raise funds to sustain their growing business operation. One of which is the Netscape.
Netscape, or formerly known as the Netscape Communications Corporation, is an American-founded computer application company, which is best known for their Internet-browsing products and services. The Netscape browser was dominant before in terms of usage share. However, with the competition among different browsers, Netscape have lost their user base within that particular area. As a result, the usage share of Netscape browsers is now under 1 percent and still falling slowly.
Netscape went public for the first time in April 1994. They have filed before the Securities and Exchange Commission for an initial public offering of 3.5 million shares of common stocks to the public. After the completion of the IPO process, Netscape were able to grow faster than any other existing software company in terms of revenues. Their initial market value was now around $ 1 billion against the $200 or $300 million of other computer application companies. In addition, they have enough cash to pay for their additional expenditures.
Netscape existed as an independent company from 1994 up to 2003 before they became the subsidiary of the America On Line (AOL). However, the Netscape brand is still in use.
Although the Netscape is now a subsidiary of another large Internet-based company, it showed that through IPO, additional capital to pay for additional expenses and increased market value is a possibility.
Define Initial Public Offering News
Facebook Readies IPO Filing - Wall Street Journal
 The Guardian | Facebook Readies IPO Filing Wall Street Journal By SHAYNDI RAICE and RANDALL SMITH Facebook is close to picking Morgan Stanley as the lead underwriter for its initial public offering, a significant step toward what is likely to be one of the biggest-ever US public debuts. Facebook Follows Netscape and Google as a Generation-Defining Internet IPO ... Facebook IPO may be social networking bellwether Facebook's IPO Filing: A Quick Read |
It's Not About You, Facebook. It's About Us. - New York Times
It's Not About You, Facebook. It's About Us. New York Times “This company is reshaping how we think about ourselves and define ourselves and our digital selves.” The symbiotic relationship between Facebook and its users came into sharp focus when the company filed for its initial public offering, revealing just ... |
Facebook and Its Big Stock Offering - Voice of America
 This is Money | Facebook and Its Big Stock Offering Voice of America The documents are required before the company can make its initial public offering, or IPO. A date for the stock sale has yet to be announced. Experts say Facebook could raise about five billion dollars. That would be one of the biggest IPO sales ever. Facebook calls you an active user even if you don't use the site David Choe, Facebook's Millionaire Graffiti Artist Facebook files for $5bn IPO |
Facebook user figures not entirely accurate? - Internet Marketing News
Facebook user figures not entirely accurate? Internet Marketing News The social media site – popular for social media marketing campaigns – claimed in the filing of its IPO (initial public offering) that it had around 845 million active users per month and 483 million active users per day. |
Facebook promotes Timeline heavily ahead of IPO with apps like Movie Maker - Inside Facebook
 USA TODAY | Facebook promotes Timeline heavily ahead of IPO with apps like Movie Maker Inside Facebook The company is showing maturity as it prepares to file for an initial public offering that could raise at least $5 billion for the company. Timeline will be mandatory for all users within weeks, but users have been able to opt in since December. Facebook Timeline Movie - Made For You, Made By You! Facebook Releases Moviemaking App to Demystify Timeline |
Caesars: The Art of Trading Day One of an IPO - Minyanville.com
Caesars: The Art of Trading Day One of an IPO Minyanville.com When trading the first day of an IPO, it is impossible to know what the stock is going to do. In trading, it is all about finding levels to trade against to define risk, and that can be done on any timeframe. On the first day, all you have to work with ... Caesars (CZK): The Art of Trading Day 1 of an IPO |
Facebook user data: 845M monthly users, 2.7B daily likes & comments - VentureBeat
 VentureBeat | Facebook user data: 845M monthly users, 2.7B daily likes & comments VentureBeat Facebook filed for an initial public offering today, and included an updated report on the giant social network's user and usage data. The company's total number of active monthly users, which it defines as registered Facebook users who have logged in ... Facebook's daunting Asian challenge Facebook: 425 Million Mobile Users ... And No Money? More than 50 percent of Facebook's monthly active users are on mobile apps |
The Facebook ETF Effect and the Reality - Barron's (blog)
The Facebook ETF Effect and the Reality Barron's (blog) But they still can't help the little guy enjoy the early pop of hot initial public offerings, and they won't do it for Facebook. About the best to be said for ETFs and the IPO market is that the warm, fuzzy feeling can rub off. |