Microsoft went public in 1986, marking a pivotal transition from a private partnership to a publicly traded company.
This move provided capital for expansion, established market value benchmarks, and shaped the trajectory of the personal computing industry.
| Event | Date | Details | Impact |
|---|---|---|---|
| Founding | 1975 | Bill Gates and Paul Allen establish Microsoft to develop software for early personal computers. | Lays foundation for future growth |
| Initial Public Offering | March 13, 1986 | Microsoft issues IPO at $21 per share on NASDAQ. | Raises $61 million and goes public |
| Stock Split | 1987 | A two-for-one stock split increases accessibility for retail investors. | Broadens shareholder base |
| Market Milestone | 1999 | Microsoft reaches a market capitalization of over $500 billion. | Becomes one of the world’s most valuable companies |
Microsoft IPO Details and Valuation
Pricing and Underwriters
The initial public offering was priced at $21 per share, with the underwriters led by Goldman Sachs and Smith Barney.
This pricing reflected strong investor appetite and signaled confidence in the software sector’s future profitability.
Post-IPO Growth and Expansion
Capital Deployment
Proceeds from the IPO helped Microsoft invest in research and development, expand sales teams, and accelerate product innovation.
The capital supported moves into operating systems, productivity software, and enterprise solutions.
Stock Performance and Market Impact
Long-Term Shareholder Returns
Over subsequent decades, Microsoft shares delivered substantial returns, fueled by cloud computing and subscription growth.
The company’s public market performance influenced technology investing and benchmark indices worldwide.
Key Milestones in Microsoft’s Public Journey
- 1986: Microsoft completes its IPO on March 13.
- 1987: A stock split makes shares more accessible to smaller investors.
- 1990s: Strong earnings and Windows adoption drive market cap expansion.
- 2000s: Shift to enterprise solutions and cloud services under new leadership.
- 2014: Satya Nadella leads renewed focus on cloud and productivity.
- 2020s: Continued growth in Azure and enterprise segments sustains valuation.
Legacy and Continued Public Market Relevance
Microsoft’s public market presence remains influential, with ongoing investor interest in cloud and AI.
Shareholder engagement and transparent reporting continue to define its relationship with the public markets.
FAQ
Reader questions
What date did Microsoft go public?
Microsoft went public on March 13, 1986.
What was the IPO price per share for Microsoft?
The IPO price was set at $21 per share.
How much capital did Microsoft raise in its IPO?
The offering raised approximately $61 million for the company and early shareholders.
Which underwriters managed Microsoft’s IPO?
Goldman Sachs and Smith Barney led the underwriting syndicate for the IPO.