On August 9, 1995, Netscape made an extremely successful IPO. The stock was set to be offered at US$14 per share, but a last-minute decision doubled the initial offering to US$28 per share. The stock's value soared to US$75 during the first day of trading, nearly a record for first-day gain. The stock closed at US$58.25, which gave Netscape a market value of US$2.9 billion. While it was unusual for a company to go public prior to becoming profitable, Netscape's revenues had, in fact, doubled every quarter in 1995. The success of this IPO subsequently inspired the use of the term "Netscape moment" to describe a high-visibility IPO that signals the dawn of a new industry.
Tuesday, August 09, 2016
August 9, 1995 :: Netscape IPOs and the Dot Com Bubble is in its infancy
The shadow of the the insanity to come, on August 9th, Netscape exploded out of the gates with its IPO.