Going Public: Blue Niles Grounds for Doing Such

One of the most recent news that struck most, if not all, fans of expensive jewelries is the sudden shift of Blue Nile regarding their stocks. From being a private organization, Blue Nile underwent Initial Public Offering wherein several stocks of the company were offered to the general public. Fundamentally, Blue Nile moved to being an open organization.

What might possibly be the reason for this unexpected change for the company?

Well, before jumping out to conclusions, let us first try to understand what IPO is and how it works. Awhile ago, it was said that stocks are handed over to the public.

One main objective for this is to create enough sources for expansion. The organization turns into an open exchanging ventures as a substitute of being contributed by private investors. In this case, IPO does not only hand out advantages to the public investors but to the company as well.

We should examine the movement made by Blue Nile to further comprehend this notion. Blue Nile is known to be one of the finest makers and retailers of precious stones. It is also known as one of the great competitors of Tiffany & Co. and other famous jewelry shops all around the world. They produce only the best for their customers and even educate people on the quality of diamonds by their diamond color chart, diamond clarity chart, and diamond size chart, which makes it a whole lot easier for anyone to choose a diamond. In all prominent companies when it comes diamonds, Blue Nile is also included.

Its sudden shift in the stock market gained a whopping $40 million with the initial share of 2 million at the first launch of it going public. Aside from this figure, the company jumped to 37% increase on the said launching. A lot of public depositors were not really expecting a high return of investment with this company. High shares from the company were already expected by the professionals. And even though the price that was offered by the company is relatively higher than that of the others, they were still able to enjoy the demands.

Because of the move done by Blue Nile, which is a Seattle-based company, online purchasing of diamonds has never been better. Their shift from being a private company to public organization boosted the authenticity of purchasing diamonds, selling jewelries and other goods through the Internet. Due to the modification of Blue Nile, it is expected that online selling and purchasing of diamonds will increase and Blue Nile itself might even double up its profits.

Going IPO is one smart move conducted by this prestigious company and other corporations might begin thinking about it as well. With the profits made by Blue Nile, it is likely for other companies of the higher class to earn the same.

Blue Nile has set the bar when it comes to companies shifting towards Internet Public Offering, considering that the very last trader to outdo the IPO range was in May of 2002.