project on ipo
Upcoming SlideShare
Loading in...5
×
 

project on ipo

on

  • 1,472 views

 

Statistics

Views

Total Views
1,472
Slideshare-icon Views on SlideShare
1,472
Embed Views
0

Actions

Likes
0
Downloads
18
Comments
1

0 Embeds 0

No embeds

Accessibility

Categories

Upload Details

Uploaded via as Microsoft PowerPoint

Usage Rights

© All Rights Reserved

Report content

Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel

11 of 1

  • Full Name Full Name Comment goes here.
    Are you sure you want to
    Your message goes here
    Processing…
  • Hi, i am arjun doing a part time mba. can you pls email me your hard copy of IPO on arjunshah_12@yahoo.co.in. please
    Are you sure you want to
    Your message goes here
    Processing…
Post Comment
Edit your comment

    project on ipo project on ipo Presentation Transcript

    • Initial Public Offering (IPO) Definition: A company’s first equity issue made available to the public. This issue occurs when a privately held company decides to go public Also called an “unseasoned new issue.”
    • Why do companies go public? New capital – Almost all companies go public primarily because they need – money to expand the business Organizational growth Mergers and acquisitions – IPOs are often used to finance acquisitions
    • Disadvantages of the IPO Expensive – A typical firm may spend about 15-25% of the money raised on direct expenses Reporting responsibilities – should share the companies disclosure Loss of control – Ownership is transferred to outsiders who can take control and even fire the entrepreneur
    • Outline of the IPO process:1. Select an underwriter2. Register IPO with the SEC3. Print prospectus4. Price the securities5. Sell the securities
    • 1. Select an underwriter An underwriter is an investment firm that acts as an intermediary between a company selling securities and the investing public The underwriter is the principal player in the IPO
    • 2. Register IPO with SEC The firm must prepare a registration statement and file it with the SEC Under the act6 of 1934 The registration statement discloses all material information concerning the corporation making a public offering
    • 3. Print prospectus The prospectus is a legal document describing details of the issuing corporation and the proposed offering to potential investors Contains much of the information in the registration statement
    • 4. Price the securities How much to charge for giving away a part of the firm is very important to the issuers The securities are priced based on the value of the company and expected demand for the securities
    • 5. Sell the securities A full-fledged selling effort gets under way on the effective date of the registration statement
    • The End… Any Questions???