Your favorite moving and storage company, U-Haul, is going public! For those of us who have no idea what that means and don’t really think it affects them, keep reading for a crash course in investments and the effect this decision will have on you. Let’s Know more about U-Haul Publicly Traded
Going public just means a once private company’s Initial Public Offering (IPO) changing to publicly traded. Simply put; U-Haul is now offering its shares for anyone to buy on the open market. Companies can decide to go in this direction for a number of reasons, it is a big step and shows a high level of growth and maturity. We know this may sound like nothing to do with you, as the customer, but a change like this will have varying effects on both you and the company which we will highlight in this article.
Process of moving from Private to Public company
To make this big leap, as previously mentioned, a company must go through the rigorous process of making an IPO of shares; which can take anywhere from four to six months. This process includes;
- Picking an underwriter; a financial expert who has a look at your finances to assess the risk attached with providing your company with a loan. I.e Investment Banks.
- Handling of official filings and procedures.
- Determining the company’s overall valuation and share price, ready to share.
- Let the trading begin; start offering shares to initial investors.
- Make the final transition from private to a public company, now listed on the stock exchange for any investor to buy at market price.
What does this mean for U-haul?
Like any decision, this will mean significant changes within the company and certain advantages and disadvantages.
The change from private to public means:
- Majority ownership from stockholders. No longer keeping the circle small, open to all.
- Appointment of a board of directors who will actually run the company. In charge of the day-to-day decision-making.
- Corporate leadership. The CEO leads a team of high-level management like managers.
- Public financial information. In order for investors to have trust and make a decision they can stand behind, the public company must be an open book and share its financials.
| Advantages | Disadvantages |
| Strengthening of capital base | Puts pressure on short-term growth |
| Increases Prestige | Minimal investor control |
| Portfolio Diversification | Forces disclosure to the public |
How will customers be affected?
So far we’ve gone through the ins and outs of what it means to go public for the company and this is important for all those thinking of doing the same or planning for the future. Now we can discuss what this may mean for YOU.
We all know how successful U-Haul is and how they had to work from the ground up, not lucky enough to be an overnight success like some. They can boast of having the largest fleet in the do-it-yourself moving industry and now you can be a part of the action too! Buy shares today; make an investment that will last way beyond your years and spill into future generations to come, set your great-grandchildren up with the best. Just like what happened with U-Haul being established in the early 1900s and now being a household name.
U-Haul Share Price
The next step to getting involved is to find out how much it will cost you and the possible returns you could be getting. Luckily, as mentioned prior, public companies must openly share their financial history so this shouldn’t be a problem.
U-Haul is under Amerco; using the symbol UHAUL when trading. It represents a number of other brands too but U-Haul is surely its highest earner. Stock prices are always shifting so don’t get caught slipping, make the news your best friend. For example;
- The highest stock price to date was 769.90 and the lowest was 447.92
Conclusion
The decision to go public rests on the shoulders of the company at hand and the goals of its founders; there is no right or wrong, no win or lose. It was more than expected for a company like U-Haul, clearly having grown out of the start-up phase and available in thousands of locations to look for something bigger. Whether you are reading this as a potential investor, an interested customer, or by accident; we hope you got some questions answered.
Frequently Asked Questions
- Can a company be listed on stock exchanges with no IPO to their name?
Yes, if they meet all requirements set by the U.S. SEC (Securities and Exchange Commission).
2. What is a price band?
Simply the lowest and highest limit of the share price a company can begin to start selling its shares to the public. Investors are allowed to land anywhere in between these limits.
3. What types of companies usually go public?
Any company trying to get greater access to capital usually decides to go public.
