Companies That Had Their IPO in 2006: Healthy Stock Market and IPO Landscape

In 2006, the market sentiment was generally positive, reflecting a period of economic growth and stability. This optimistic outlook was fueled by strong corporate earnings, low inflation rates, and continued growth in consumer spending. The confidence of investors was buoyed by the robust performance of the global economy, despite rising oil prices and concerns about potential interest rate hikes. The IPO landscape in general reflected the sentiment of the broader markets at the time, and there was a large number of companies going public from various sectors.

• An optimistic market: The general market sentiment was bullish and optimistic.

• A healthy IPO landscape: The IPO market in 2006 was healthy, with several large public offerings.

• Emerging Markets Growth: Emerging markets were performing exceptionally well during this period.

• One of the Largest IPOs ever: The IPO of The Industrial and Commercial Bank of China (ICBC) took place in 2006, and is still one of the largest IPOs ever.

Overall, the market sentiment in 2006 was positive, reflecting a period of economic prosperity and confidence among investors, businesses, and consumers. This optimism was driven by a combination of factors that created a favorable environment for investment and growth.

Firstly, the global economy was experiencing robust growth, with many countries posting strong GDP figures. In the United States, the economy was in a state of steady expansion, with low unemployment rates, rising consumer confidence, and strong corporate earnings. The housing market, in particular, was a significant contributor to the optimistic atmosphere, with prices rising steadily and construction booming. This, in turn, had a positive effect on consumer wealth and spending.

Emerging markets during this period generally outpaced the economic growth of developed countries. They exhibited high GDP growth rates, fueled by increased industrialization, urbanization, and a burgeoning middle class. Countries like China and India, for instance, saw rapid economic expansions, with China maintaining double-digit growth rates and India experiencing growth in its services and IT sectors. There was also a surge in foreign direct investment in emerging markets in 2006 which in turn helped to spur domestic industries.

The 2006 IPO of ICBC was the largest ever conducted at the time and is today still one of the largest public offerings ever. The company raised nearly $22 billion, and its shares were listed on both the Hong Kong and Shanghai Stock Exchanges.

Chipotle Mexican Grill went public in the spring of 2006 and saw its share price rise by 100% on its first trading day. Around six months later McDonald's, the company's largest investor at the time, divested its holdings for over $1 billion of profits.

First Solar had its IPO in 2006 and is today one of the largest and most important players in the industry.

The parent company of the American ultra-low-cost airline Allegiant Air (Allegiant Travel) went public.

The payment company MasterCard went public in 2006 and had previously been an association led by a number of banks. Today, it dominates the payments industry together with Visa.

Further reading: Visa and Mastercard: The Global Payment Duopoly

The now iconic footwear brand Crocs was founded in 2002 and quickly saw success. Just four years later, in February 2006, it went public.

Canada's premier coffee chain Tim Hortons went public in 2006. Previous to the IPO, the company had been owned by Wendy's.

Mark Leonard's legendary Constellation Software went public in 2006 and has since continued on a steady trajectory upwards.

Further reading: Mark Leonard's Shareholder Letters

The financial markets were reflecting this optimism, with stock indices in many countries reaching new highs. Investors were buoyed by the strong corporate earnings, low-interest rates, and relatively low volatility in the markets, which encouraged more people to invest in equities. However, it's crucial to note that while the market was buoyant in 2006, it was also the period just before the onset of the 2007-2008 global financial crisis. The underlying issues and causes were present in 2006, eventually leading to one of the most severe financial downturns ever.