This document provides an overview of investment banking as a career. It discusses three main functions: investment banking, research and trading, and advisory services. It describes what investment bankers typically do, including corporate finance deals like IPOs, debt offerings, and mergers and acquisitions. The document outlines the underwriting process for securities offerings and the role of investment banks as underwriters. It also discusses the skills needed for a career in investment banking, such as knowledge of economics, business, finance, accounting, and strong communication skills.

1. Investment Banking
as a Career
September 22, 2013
Arif Khan M.Com MBA FCMA CFA
Commissioner, Bangladesh SEC

2. Three functions:
 Investment banking (Merchant Banking in Bangladesh
context-mostly corporate finance deals)
 Research and trading -mostly equity research and
trading
 Advisory services for mergers and acquisition and
enterprise valuation
What an Investment BankerTypically Does?

3.  Corporate finance deals with raising money for firms to
maximize shareholders wealth. Common areas are:
Initial Public Offerings (IPO)
 Debt offerings, private placement and public offerings
 Equity, private placement & right offer or repeat public
offer
Corporate Finance Activities

4.  Understanding the whole process of issuance
of shares and corporate debt
 Underwriter provides advice for issuer,
distribution of securities, sharing of risks of issue
and stabilization of aftermarket
 Underwriter also “certifies” the issue by putting
its reputation behind the issue
Huge Role of Investment Bankeras Underwriter

5.  Advise issuers about their choices
 Agreement among underwriters, designates
manager, fees
 Cooling off period- distribute prospectus
Organizing road show for prospective investors
The Underwriting Process- Prefiling Period

6.  Filing with Bangladesh SEC
 Decide on offering price, electronic book
running
 Price discovery for IPO
 Opening the issue for public subscription
The Underwriting Process- Second Phase

7.  Understanding the business
 Industry overview and competitive positioning
 Financial statement analysis
 identifying investment risks
 finding out the value, not the price!
Equity Research-Basics

8.  Analysis of potential mergers or acquisition
 Organizing leverage buy-out deals
 Corporate restructuring
 Divestitures
 Enterprise valuation
Corporate Advisory

9.  Positive attitude in problem solving
 who are comfortable with numbers
 who likes to work with people
 almost all jobs in i-banking are people oriented
What Type of People Do Well in i-Banking

10.  Basic knowledge in economics
 A broad understanding of business
 understanding the operation of financial market
 A strong understanding of accounting, and
financial statement analysis capability
 Backgrounds in corporate finance and
investment
 Marketing skills, enthusiasm and people skill
 Good written and oral communication skill
What You Need to Make it in i-Banking

11. • “The only place where success comes before
work is in a dictionary”
 “ If I am interested in a company, I’ll buy 100
shares of all its competitors to get their annual
report”
 “We should pay to Have This Job”
 “ Find out your area of interest and think and
work with it passionately for 24 hours”
Final Note-Continuous Learning and Hard Work

12. THANK YOU