Advantages And Disadvantages Of Ipo

Advantages And Disadvantages Of Ipo
An Initial Public Offering (IPO) is the first time that the security of a company is offered to the
public. This process of equity offering is followed by the companies under the rules and regulations
or the guidelines prescribed by Securities Exchange Board of India (SEBI).IPO is the major source
of capital for firm to raise their capital for their business Replacement, Expansion, Modernization,
Diversification or the host of any other purpose. The pricing of IPOs is one of the most puzzling
phenomena in finance. It is tough to predict its prices on listing day of trading in Capital market. It
is totally depends upon the Market trend, Issue Price, Issue time, Issue age, Issue size, reputation of
Book Running Lead Managers (BRLM) , No. of ... Show more content on Helpwriting.net ...
Various studies have been found on the concept of under pricing phenomena of IPOs.
Peng (2008) described the long run IPO performance, the Shanghai Stock exchange index was used
as a benchmark. These studies analyzed the aftermarket performance by using the cumulative
abnormal returns (CAR) and buy and hold abnormal return (BHAR). It showed that IPO over
performance in six months ofter listing day and recorded under performance after six months of
listing.
Mishra (2009) studied the performance of the Indian IPOs from April 2001 to March 2009 for the
long run. Results show that there exist positive returns on the listing day. It is found that the down–
market is a major cause for the poor listing–day performance of the negative group, whereas a
positive group does not gain anything from an up–market preceding the IPO. With respect to the
average holding–period return, for the negative group (starting day–1, not day–0) becomes
significant only after four years, while it is positive throughout for the positive group. The study
concluded that IPOs in the long yield a return equal to the market, when initial return is
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Financial Management : Key Performance Metrics
Section 1 Financial management encompasses a broad array of different methodologies, key
performance metrics, and news and events, amongst many other segments. From the smallest of
public companies, to global giants, data is continuously compiled and analyzed to gauge
performance and predict future trend. Of course, these studies can never be completely accurate, as
market performance is unpredictable and sometimes quite volatile. It's because of the unknown that
the constant fluctuation of individual stocks and overall markets is present. These fluctuations are
tied to many different factors, including the key data that companies release. It's from this data, such
as annual reports, that analysts can gauge the performance of the company and investors can decide
the fate of the share price from the buying and selling activities they perform. Other events also play
a major role in the markets and in the overall examination of financial management, such as initial
public offerings and secondary offerings, and these instances provide fuel to an already complicated
system of gauging and predicting the market. Truly, the factors used to analyze a market are
limitless. Even extraneous variable, such as bond yields, are used to predict future market
movement. In the below detail, some of the general facets of financial management and market
analysis will be examined. Our discussion of the issues of financial management for the scope of
this project have been directed at the major

Trx Finance Case
TRX Inc. (Home Assignment). The Financial Analysts
Melissa Gottschall, Jillian Marchand, Scott Duggan, Cary Konopka, Blair MacLaughlin, Jake Baker
1) In general, what attributes make a company a good candidate for an IPO?
– Good Business History and Background: Investors will forecast future earnings off of the
historical background of the company. It will also show that your company is stable. Many investors
will be looking to hold the stock long–term, so if investors trust the background of the company,
more people will be willing to invest.
– Experienced Management: Good management can ensure that the company will make decisions
that are best for the company and to ensure profitability. Also, good management is the basis ...
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All initial public offerings are all cash offers, which entail securities being offered to the general
public at a cash price when the company decides to go public. All companies on the Toronto stock
exchange come under the Ontario securities commission's jurisdiction. Management must obtain
permission from the bod in order to do an IPO. The firm must prepare and distribute copies of a red
herring (preliminary prospectus) to the OSC and to potential investors.
They're a series of steps involved when issuing the initial public offering. The basic procedure in
Canada is as follows: 1. Management's first step before issuing securities to the public is to obtain
approval from the board of directors. This step requires a vote of the shareholder/shareholders. In
this initial phase, the company will create or update their business plan, select lawyers, auditors and
underwriters/agents. As well as review and strengthen internal systems, procedures, ensure that their
accounting policies and financial records are prepared for the required prospectus. This first phase is
crucial for the business to ensure that they are prepared to follow through with their IPO objectives.
2. Once issuance of IPO is approved the firm must prepare and distribute copies of a preliminary
prospectus to the OSC and to potential investors. The prospectus contains: * Description of the
offering * Description of the company * Detailed financial information *

Advantages And Disadvantages Of Raising Capital
This act of issuing stocks is to obtain capital growth and by raising capital through the use of equity
there are many advantages to the firm as well as several disadvantages. The value of stock is what
the stock is worth and the stock market is a place where you can buy and sell shares of a company.
If a firm needs extra money in order for their business to grow, it is possible for them to sell a share
or the entire ownership of the firm in the form of stocks. Firms can benefit greatly from this act but
some firms do not and their business ends up failing. Before a company considers issuing new stock
it is crucial that the company has a solid management team, and capitalization displaying no more
than twenty five percent debt and growth of at least ten percent annually. The best time to raise
capital through the use of equity for your company is when the industry is growing rapidly and the
company requires access to more capital and public recognition to fund its plans for growth,
development and expansion. The main advantage is the obvious gain of capital for your firm by
issuing stocks to the public and this is known as an IPO (Initial Public Offering). A firm needs
capital so it can operate its business and the corporate management can finance their capital
structure for the future by issuing stock. A major advantage in this ... Show more content on
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Specialists say that a company's management is likely to be working with little else throughout the
whole process which can last as long as two years. The owners and managers of the business are
required to prepare registration statements for the US Securities and Exchange Commission (SEC),
as well as consulting with investment bankers, attorneys, and accountants. These regulations in the
future will restrict the ability of a public company's management to trade their stock and to discuss
company business with

Initial Public Offering: A Case Study of Avaya
When a firm has decided to undertake an initial public offering (IPO), the firm needs to determine
how it wants to go about that process. There are a number of factors that the company needs to take
into consideration. These include the expected buyers, the price, the method of the offering (online
or traditional) and the choice of brokerage. Avaya is a phone systems maker that has a value of
approximately $1 billion. The market for technology–based IPOs is good right now, with several
companies coming to market. Not all the IPOs have been successful, but certainly firms whose
brands are known like LinkedIn have been successful. For companies with a lower profile among
consumers, they are more likely to sell their IPOs to institutional investors such as mutual funds,
pension funds and high net worth investors that constitute the preferred clients of brokerage houses.
One of the first decisions that Avaya needs to take into consideration is who is likely to buy the IPO.
The traditional IPO path holds that a broker will put together a syndicate of brokerage houses that
will each take a piece of the IPO (Kamlet & Rini, 1995). They will then portion out the shares they
receive to their customers, usually with priority going to the largest and best customers. Avaya,
whose true value may actually be much higher than a $1 billion valuation (Klassen, 2011), should
be a popular offering if investors can be convinced that the valuation on the IPO is significantly
lower than the

Visa, Inc.(Ipo Paper) by Didier Buka
IPO Paper
Visa Inc. (VN) operates the world's largest retail electronic payments network and manages the
world's most recognized global financial services brand. Visa has more branded credit and debit
cards in circulation, more transactions and greater total volume than any of their competitors. They
facilitate global commerce through the transfer of value and information among financial
institutions, merchants, consumers, businesses and government entities. They provide financial
institutions, their primary customers, with product platforms encompassing consumer credit, debit,
prepaid and commercial payments. Visa Net, their secure, centralized, global processing platform,
enables them to provide financial institutions and ... Show more content on Helpwriting.net ...
Class A common stock is being offered to the public pursuant to this prospectus. Class B common
stock is held by financial institution customers that are members of Visa U.S.A. Class C (series I)
common stock is held by financial institution customers that are associated with Visa Canada and
their AP, LAC and CEMEA regions. Class C (series II, III and IV) common stock is held by Visa
Europe.
However, an investment in their class A common stock involves a high degree of risk. You should
carefully consider each of the following risk factors and all other information set forth in this
prospectus before investing in their class A common stock. Any of the following risks, if realized,
could materially and adversely affect their revenues, operating results, profitability, financial
condition, prospects for future growth and overall business. In that case, the trading price of their
class A common stock could decline and you could lose all or part of their investment.
Giving pro forma effect to the transactions described above and the October 2008 redemption and
subsequent conversion as if each occurred promptly following the closing of this offering, the
number of shares outstanding and the number of shares of class A common

The Initial Public Offering Process of Yahoo Corporation
RUNNING HEAD: Yahoo Initial Public Offering (IPO)
Yahoo Initial Public Offering (IPO)
Student Name
University Name
Abstract
The preceding paper analyzes the financial trends of Yahoo Corporation. It discusses in detail, the
initial public offering process of Yahoo corporation. The performance of Yahoo stock and the trends
in its stock price after the initial public offering are also discussed in detail in this paper.
Yahoo Initial Public Offering (IPO)
Introduction
Yahoo Corporation is an internet communication and media company. It provides network, every
day, services to about two hundred and seventy four million people around the globe. Being a
pioneer in the Web navigation, Yahoo is the first choice of many customers in the fields of
advertisements, households and businesses. The company headquarters are in Sunnyvale from
where it spreads to Europe, Asia, Latin America, Canada, USA and Australia. (Press, 1995)
In addition to the services provided by Yahoo Corporation, it has the advantage of being free. The
website is sponsored by advertisers who pay Yahoo for the promotion of their products on the
website. The advertisers are lured towards Yahoo because of the wide customer base of 2.4 billion
entertained by a network of 25 international sites in 13 different languages. This certainly gives
Yahoo an edge over its competitors. Moreover, the corporation also gives services of mail, chat and
news according to respective geographic areas. (Press, 1995)
The

Ipo : A Case Of Alibaba Ipo
北京外国语大学毕业论文题目 Study on IPO process – A case of Alibaba IPO 系别国际商学
院专业工商管理姓名 Gabriela Garcia Soesanto 攻读学位管理学学士导师 Prof. Ren Kang
Yu 定稿日期 2015 年 6 月 8 日 Study on IPO process– A case of Alibaba IPO A Thesis Submitted
To International Business School of Beijing Foreign Studies University in Partial Fulfillment of the
Requirements for the Degree of Bachelor of Business Administration By Gabriela Garcia Soesanto
Supervised by Prof. Ren Kang Yu Beijing Foreign Studies University Beijing, China 08 June 2015
ABSTRACT This thesis will elaborate and analyze the procedures and process in doing a cross–
border IPO. Taking the practical sample of a giant Chinese E–commerce company Alibaba, who had
a cross–listing in the New York stock Exchange (NYSE) on 19th Sept. 2014. This paper will cover
about the general IPO and Alibaba's IPO in details, taking into account all reasons and
considerations taken in deciding each and every step in the IPO process. From why and how they
decided to raise capital through IPO, how they develop a team for IPO, how and why they choose
particular underwriter(s), who and why they choose those particular team of lawyers, bankers and
accountants that helped them prepare the

Jetblue Airways Ipo Valuation
JetBlue Airways IPO Valuation
Summary
In July 1999, David Neeleman announced his plan to launch a new airline that would bring
"humanity back to air travel." Despite the fact the airline industry had 87 new–airline failures in
U.S. over the past 20 years. Neeleman's plan convinced a group of investors and quickly raised $130
million from venture–capital community. This is the way JetBlue Airways established. With its
strong capital base, JetBlue acquired a fleet of new Airbus A320 aircraft and focused on low–cost,
point–to–point service to large metropolitan areas with high average fares or highly traveled markets
that were underserved. This strategy brought JetBlue Airways an excellent position in the beginning
phase. JetBlue Airways ... Show more content on Helpwriting.net ...
Most of each production run is manufactured for such national brands as GE and Maytag, although
the company distributes its own line of appliances for selected discount stores under the brand
"Royal Flush". There are two major manufacturing plants–in Phoenix AZ and Roanoke VA. Over
60% of sales are to chains like Wal–Mart.
Appliance Station must now raise $75 million to modernize the two plants and expand the Phoenix
facility in order to accommodate expected sales increases in Appliance Station's business in the
housing market in the Nevada and Arizona markets. There are three possible financing alternatives
to raise the needed $75 million: 1) a stock issue, 4 million new common shares at a price of $20 per
share. Appliance Station would net $75 million after $5 million cost. 2) a bond issue, ten–year
debentures bearing an interest rate of 8%. 3) a combination of stock issue and a bond issue.
Questions
What is the risk of issuing bond?
First, debentures means without any security, it's paid back up on company's earning. Appliance
Station needs to get rating for its bond. If the rating is not good such as BB, then it's not easy to sell
the bond and the interest rate will be higher, so the company might not raise enough money. Second,
Appliance station needs to pay interest for the bond. (AAA rating's interest is the lowest around
1%). If the company cannot pay the

Case Study Of Bharti Infratel
The figure below illustrated that Bharti Infratel is the second largest IPO in India in the last five
years, after Coal India. (Quartz Media USA, 2015) Initial Public Offering Details: Deal Dates:
Announcement/Filing Date: 14 September 2012 Book Building Period: 11 to 14 December 2012
Pricing Date: 17 December 2012 Listing Date: 28 December 2012 IPO Grade: Grade: 4 Rating
Agency: CRISIL, IPO Grade Date: 27 November 2012 This grade indicates that the fundamentals of
the IPO are above average relative to the other listed equity securities in India. (CRISIL, 2012)
Overview: Offer Price: INR 210 Total Value: INR 39669 Million Subscription Ratio: 1.27 Retail
Subscription Ratio: 0.0706; Institutional Sub Ratio: 2.84 Shares from Issuer (Primary): 146.234
Million – 77.41 % ... Show more content on Helpwriting.net ...
Source: (Deloitte Touche Tohmatsu India Private Limited, 2015) With new players like Reliance Jio
entering, the industry is like to see some radical change in market share of its players. Bharti
Infratel's revenue base will depend on the performance of these telecom operators. Conclusion: We
find that the Bharti Infratel IPO was a fairly successful IPO. The timing of the IPO was slightly
early and the company could raise more funds in early 2013. This has been compensated by Bharti
Infratel's additional capital raising activities. Fair price of the IPO ranged between INR 232 and INR
268 based on our valuation. The IPO was subscribed at INR 210 due to tepid response among retail
investors. Overall the IPO was oversubscribed 1.3 times and has generated handsome returns for its
shareholders since list date. The company has outperformed other companies which were listed
during the time. Bharti Infratel has maintained steady growth since the IPO with its EBIT growing
at a 5 year CAGR of 20% and top line growth at par with industry. RoE and RoCE have improved
to 13% and 21% respectively showing a phenomenal improvement in operational

Role of Qib in Indian Capital Markets
ROLE OF QIB (QUALIFIED INSTITUTIONAL BUYER) IN THE INDIAN CAPITAL MARKET
FOR THE LAST 6 YEARS A] Who are the Qualified Institutional Buyers? Qualified Institutional
Buyers (QIBs), as defined under sub–clause (v) of clause 2.2.2B of the SEBI (DIP) Guidelines, can
be one of the following: 1. A Public Financial Institution as defined in Section 4–A of the
Companies Act. 2. A Bank 3. FII (Foreign Institutional Investors) that are registered with SEBI 4.
Development Financial Institutional, both multilateral and bilateral 5. VCF (Venture Capital Funds)
registered with SEBI 6. SIDC (State Industrial Development Corporations) 7. Insurance Companies
registered with the IRDA (Insurance Regulatory and Development Authority) 8. Provident and ...
Also, the retail investors generally look at the subscription levels of the QIB portion of the offer to
get an idea about the image of the company in the market. The SEBI guidelines amendment in
September 2005 allowed at least 5% of the QIB's reserved portion to go to Mutual Funds which
gave an opportunity for the retail investor to get a bigger share of the pie through the Mutual Funds.
THE STATE OF THE QIP (QUALIFIED INSTITUTIONAL PLACEMENT) SINCE IT'S
INCEPTION IN 2006 QIPs are a quick and cost effective method of raising funds by way of private
placement of securities or convertible bonds with QIBs. Before the introduction of Chapter XIII –A
in the SEBI DIP Guidelines, an Indian listed company intending to raise further capital from the
public markets in India had the option of doing so by offering securities through a follow–on public
offering or preferential allotments. In May, 2006, SEBI came out with it's guidelines for raising
funds through the QIP route. Since then, a lot many companies have gone this route. The intention
of SEBI behind allowing QIP Scheme, is to promote the domestic private placement which is
generally considered to have two prime advantages over FCCBs (Foreign Currency Convertible
Bonds) and GDRs (Global Depository Receipts), i.e. keeping liquidity in the same market and faster
way to get approvals. Through

Ipo vs Fpo
1. INTRODUCTION
Initial Public Offering (IPO), also sometimes simply referred to as a "Public Issue" is the first sale
of stock by a private company to the public. Public issues are done by both small as well as large
companies seeking capital to expand business. It is also sometimes done by large privately–owned
companies looking to become publicly traded.
When an already listed company makes either a fresh issue of securities to the public or an offer for
sale to the public, through an offer document, it is called Further Public Offering or FPO .
According to industry experts , IPO gives very high abnormal returns with a shorter period of time .
IPO returns depend mainly on the issue size , list price , market lot and the season of ... Show more
content on Helpwriting.net ...
Even long established private companies can access the IPO route to raise capital, and become
publicly traded companies as a result. An IPO is considered as a "rite of passage" into the big league
of publicly traded stocks. Any company that needs to be listed on a stock exchange has to offer its
shares to the public.
In addition to IPO, an already listed and publicly traded company may issue an FPO – a Follow on
Public Offer – to raise further capital for the company. At any given time, there are a number of IPO
and FPO issues floating around in the market, therefore, it is essential to understand the difference
between the two.
Shares issued in an IPO are bought in the primary market, while shares brought from another
investor are exchanged in the secondary market. The distinct between primary and secondary
market is notional, there is no physical separation between the two. An important distinction
between shares purchased during an IPO and shares purchased from the secondary market is that
while in case of an IPO, the money goes directly into the company coffers; in case of secondary
market, the money is transferred from one investor to another.
The basic difference

Initial Public Offerings Introduction And Three Ipos Essay
Initial Public Offerings Introduction and Three IPOs
IPO stands for initial public offer; it is offered by a new publicly listed company of share, and
occurs when a company goes from being privately held to publicly owned with shares trading on
stock market. IPO could fund for new companies. It's a cheaper way to raise funds than issuing
bonds and borrowing from banks, but required funding will not be raised when people don't buy its
share (Viney 2015). Although Australian IPO is not as stable as in China, always increasing in the
first a few days, it still attracts many investors.
A company has to meet ASX listing requirements in order to be listed. ASX requires a company's
minimum investment value, current annual profit, required documents and many other factors (ASX
2016). Some people suggest the strict rule limits young companies to grow and be listed, but it
reduces some risk for investors and stock market.
A company has satisfied ASX listing rule may step to listing process. The whole process may take 5
months. Basically, company will find an advisor, a stockbroker or investment bank. The bank will
recommend the timing and pricing of share, and help to prepare a prospectus. The prospectus is a
critical component of the listing process, with detail of past and forecast performances of the
company. Secondly, the company should lodge the prospector with ASIC, and during a seven–day
exposure time the prospectus is made available for public review and comment. Then lodge

Questions On Initial Public Offerings
Isaac Smith Sinha: FIN 494 4/23/15 Initial Public Offerings Introduction: Initial Public Offerings
are when any type of security is sold to the public for the first time within a company's history. The
main reason for this is to hope that a liquid market will grow within this security, where people are
trading shares on a daily basis. The reason that I have decided to do research on IPO's is because it
sounds very simple, yet there are many things that must be done in order to reach a point to offer an
IPO and there are also many ups and downs for companies to weigh to see if it is worth taking their
security to the general public. Throughout this paper I will introduce to you why company's want to
issue IPO's, how they do it, and how they try to create the initial price per share. Along with those
key ideas, I will talk about why most IPO's are underpriced when they go to market, price changes
once on the market, and lockup agreements. Finally, I am going to give a few examples of recent
IPO's such as Facebook and Sportsman's Warehouse, and other IPO "fallouts." Why do firms want
to go public? As noted above an IPO occurs when a security is sold to the public for the first time.
Most firms start out generating equity privately from a relatively low amount of investors. With this
type of funding there is no liquid market for any of the shareholders to sell their stock within a
privately funded company. When companies decide that they need to raise more capital than what

Case Study Of Constantine's Grocery
University of the people
BUS 5111: Financial Management – Term 1, 2017–2018
Written Assignment 6
XXX XXX XXX Abstract
In this case, Constantine's Grocery became a full service grocery store chain in the USA and
required additional 135 million dollars to maintain current operations. This paper is intended to
provide the narrative to discuss pros and cons of different ways such as issuing debts and stocks to
raise capital. Later, I talked about initial public offering(IPO) process.
Background Information
Constantine's Grocery, one of family businesses in the USA, has endured sixty years and became a
full service grocery store chain. In order to maintain the current operations and support the growth
in the future, an additional ... Show more content on Helpwriting.net ...
(n.d.). Retrieved October 03, 2017, from https://moneyterms.co.uk/debt_covenants/
Suralta, J. (2016, April 12). Is Your Company Aiming for an Initial Public Offering? This Checklist
Can Guide You. Retrieved October 03, 2017, from http://foundersguide.com/guide–to–ipo–process/
IPO Process – A Guide to Initial Public Offerings (IPOs). (n.d.). Retrieved October 03, 2017, from
https://corporatefinanceinstitute.com/resources/knowledge/finance/ipo–process
Koba, M. (2013, December 27). Initial Public Offering: CNBC Explains. Retrieved October 03,
2017, from https://www.cnbc.com/id/47099278
Execute a debt offering. (n.d.). Retrieved October 15, 2017, from
https://www.pwc.com/gx/en/services/audit–assurance/ipo–centre/execute–a–debt–offering.html
Advantages and disadvantages of stock market flotation. (n.d.). Retrieved October 15, 2017, from
https://www.nibusinessinfo.co.uk/content/advantages–and–disadvantages–stock–market–flotation
Marino, M. (2015, August 31). Stock Market Basics: What Is An IPO? Retrieved October 15, 2017,
from http://www.nasdaq.com/article/stock–market–basics–what–is–an–ipo–cm514916
Brain, M. (n.d.). How NASDAQ IPOs Work. Retrieved October 15, 2017, from

Valuation Of An Ipo : Are You Worth It?
Valuation of an IPO : Are you worth it ? Let us start by understanding that what is an IPO. What is
an IPO? An initial public offering (IPO)–is the procedure by which organizations go from private to
public and sell stock shares in their firm. Once a company is public, it is owned by the shareholders
who purchase the company 's stock when it is put on the market. Initial public offerings don 't occur
without any forethought and requires a lot of effort. An IPO generally takes three to four months
from the earliest starting point to the first day 's trading on exchange. Before we move further, let us
understand that why does a company go public? Why does a company go public? It 's essentially a
cash making move. The thought is to raise ... Show more content on Helpwriting.net ...
The prospectus shows the business plan for the company and relevant information about its growth.
For instance, if the company grew 20 percent each quarter for six consecutive quarters, the
prospectus should list this fact. Any information that demonstrates the sustainability of the company
is included in its investment prospectus. When the investment prospectus is ready, the company
hires an investment bank for further valuation. Organizations need investment banks to relegate a
worth to the business and handle financial specialist relations. To allocate a worth to a company, an
investment bank has two alternatives: Use a genuine illustration of an IPO for a comparable
company or compute the net present quality (NPV) of the company. In the event that an investment
bank utilizes a true illustration, the company whereupon it bases its IPO valuation must be
comparative in size and have comparable income streams. In the event that the investment bank
ascertains the NPV of a company for IPO valuation, it investigates the company 's advantages,
liabilities, money inflows and development potential. Components of IPO valuation: Like any deals
exertion, an effective deal relies on the interest for the item you are offering – a solid interest for the
company will prompt a higher IPO price. Solid interest does not mean the company is more
important – rather, the company

Jetblue Essay
Learning objectives 1. institutional aspects of equity issuance transaction 2. costs and benefits
associated with public share offerings 3. develop a deeper appreciation for challenges of valuing
unseasoned firms and enhance corporate valuation skills
KEY QUESTIONS FOR CONISDERATION
1) What are the advantages and disadvantages of going public?
2) What different approaches can be used to value JetBlue's shares?
3) At what price would you recommend that JetBlue offer their shares?
Potential Questions to be addressed in report submission * What is an Initial Public Offering and
why is it such a big deal? * Is going public, particularly at the time they did, a good idea for
JetBlue? * What do you ... Show more content on Helpwriting.net ...
Moreover, according to John Owen, JetBlue had prepared the initial registration statement with
security and exchange commission (SEC) for the IPO on September 11, 2001. However, based on
the September 11 attacks, they delayed IPO before it came into force. In fact, not only the terrorist
attacks on September 11, 2001, but several events happened negatively affected the global economy
during the period of going public for JetBlue. For example, the contagion of bird flu was quite
severe during taking flights, which definitely influenced the demand of flights. The increasing oil
price also raised the basic cost in any transportation industry. Another negative condition could be
the economic downturn, including crash of the dot–com bubble and financial crisis in Asia. From
this point

The Technology of Cash Flows Essay
In today's economy, cash is often considered to be king. This rings true for consumers and
companies alike. The flows of a company's cash are summarized on a company's statement of cash
flows (Gibson, 2011). The cash flow statement provides information regarding the effectiveness of
company management in operating the business, how the company's money is derived, and the way
funds are being spent (Megan, Hategan, Caciuc, & Cotlet, 2009). A company's management uses the
statement of cash flows to assist with budgeting as it can predict cash flows in the future (Megan et
al., 2009). Additionally, investors use it to assess the financial health of a company (Gibson, 2011;
Megan et al., 2009). Technology companies have experienced ... Show more content on
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The significant competition requires continued efforts in innovation and investments in new
technologies, products and services (Google, 2014). To keep up with the rapid growth, it maintains a
large staff of more than 47,000 (as of the end of 2013) with 39% of its employees in research and
development and 32.1% in sales and marketing (Google, 2014).
Ultimately, companies are in the business to make money. To do this, they trade goods or services
for cash, credit, or other goods and/or services of comparable value (bartering). Although some
businesses rely more heavily on cash transactions, businesses would be unable to remain a going
concern without long run cash inflows exceeding outflows (Megan et al., 2009). Essentially, the
statement of cash flows bridges the gap between accruals and cash flows and allows for the quality
of earnings to be evaluated (Ohlson & Aier, 2009). It accomplishes this task by making adjustments
to the net income figure from the income statement to add back non–cash related transactions
(Gibson, 2011; Megan et al., 2009). As noted by Ohlson and Aier (2009), "cash in a literal sense
must have been exchanged for it to have an effect on the statement of cash flows" (p. 1093).
Therefore, expenses such as depreciation and amortization that do not involve the use of cash are
added

The Problems Faced By Sarbanes Oxley
The second problem is public companies have always had to put up with more regulations than
private ones because they encourage ordinary people to risk their capital. After the 2007–2008
financial crisis the regulatory burden has become heavier. America has introduced new rules, from
the 2002 Sarbanes–Oxley legislation on accounting to the Dodd–Frank financial regulations of
2010. Sarbanes–Oxley increased the annual cost of complying with securities law from $1.1 million
per company to roughly $2.8 million. The third problem is growing short–termism. The capital
markets have increased their power dramatically with the rise of huge institutional investors and
intensification of shareholder activism. Mutual funds count their money in trillions rather than
billions. Hedge funds are not afraid to take on corporate Goliaths such as McDonald's and Time
Warner if they think they are failing. The average life expectancy of public companies shrank from
65 years in the 1920s to less than ten in the 1990s. The life expectancy of CEOs has also fell from
8.1 years in 2000 to 6.3 years in 2009. Investors have to right to fire managers because they own the
company. Companies have to find a balance between the short and long term, satisfying the market's
demand for profits today, while planning for the future. Owners and regulators seem to be making it
harder for bosses to look beyond quarterly earnings and board are devoting less time to strategy and
more enforcing regulations. France's

Integrative Problems and Virtual Organization Strategy Essay
Integrative Problems and Virtual Organization Strategy
Finance for Business 370
March 21, 2012
Integrative Problems and Virtual Organization Strategy
Team A has been assigned the task of examining expansion methods for the Riordan Manufacturing
Company. Team A will perform an evaluation of the strengths, weaknesses/limitations,
opportunities, and threats relating to the challenges of going public through an Initial Public
Offering. Team A will draw a conclusion concerning the success that the Initial Public Offering
process will bring to Riordan Manufacturing Company and how the Initial Public Offering status
will allow Riordan Manufacturing Company to maintain their position as leaders in the plastic
production industry.
Strengths of ... Show more content on Helpwriting.net ...
Huge amounts of personnel hours are expended during this process. When a company goes public it
becomes the property of the shareholders and thus is required to report all of their financial records
and plans for the future.
Opportunities of an Initial Public Offering Riordan Manufacturing as a result of the (IPO) and influx
of capital will be able to position itself to pursue other interests through research, development,
expansion, and acquisition efforts producing more revenue for the organization. Riordan
Manufacturing as a leading provider of medical, consumer, defense, and technical industries would
have the opportunity for improved publicity and an increase in product recognition. Riordan
Manufacturing Company going public offers an opportunity for the company's founders and venture
capitalists to reclaim their early investments, and provides a public valuation of the company that
will help Riordan Manufacturing Company facilitate future mergers and acquisitions (Apollo,
2012).. Threats of an Initial Public Offering
One disadvantage associated with going public is for a closely held business owner to lose control
of the decision–making process within the company. Another disadvantage is the reality of greater
accountability of the Security and Exchange Commission (SEC) in regulating the business. Riordan
Manufacturing's private information may become public. Riordan must pay close

Initial Public Offering
An initial public offering (IPO) is the process through which a privately held company issues shares
of stock to the public for the first time. Also known as "going public," an IPO transforms a small
business from a privately owned and operated entity into one that is owned by public stockholders.
An IPO is a significant stage in the growth of many small businesses, as it provides them with
access to the public capital market and also increases their credibility and exposure. Becoming a
public entity involves significant changes for a small business, though, including a loss of flexibility
and control for management. In many cases, however, an IPO may be the only means left of
financing growth and expansion. The decision to go public is ... Show more content on
Helpwriting.net ...
A related advantage is that the public company may have enhanced credibility with its suppliers,
customers, and lenders, which may lead to improved credit terms.
Yet another advantage of going public involves the ability to use stock in creative incentive
packages for management and employees. Offering shares of stock and stock options as part of
compensation may enable a small business to attract better management talent, and to provide them
with an incentive to perform well. Employees who become part–owners through a stock plan may
be motivated by sharing in the company 's success. Finally, an initial public offering provides a
public valuation of a small business. This means that it will be easier for the company to enter into
mergers and acquisitions, because it can offer stock rather than cash.
Disadvantages of Going Public
The biggest disadvantages involved in going public are the costs and time involved. Experts note
that a company 's management is likely to be occupied with little else during the entire IPO process,
which may last as long as two years. The small business owner and other top managers must prepare
registration statements for the SEC, consult with investment bankers, attorneys, and accountants,
and take part in the personal marketing of the stock. Many people find this to be an

ECS ICT Berhad Case Study
ECS ICT Berhad ("ECSB"), an MSC–Status company, was established in 1985 with ECS KU Sdn.
Bhd.. Today, the Group is a leading distribution hub for Information & Communications Technology
("ICT") products in Malaysia via ECS ASTAR Sdn. Bhd., ECS PERICOMP Sdn. Bhd., ECS KU
Sdn. Bhd. and ECS KUSH Sdn Bhd.. Being listed on the Main Market of Bursa Malaysia Securities
Berhad on 15 April 2010, ECSB is an associate company of ECS Holdings Limited, the leading ICT
distributors in Asia Pacific, which access to a network of more than 25,000 channel partners across
China, Thailand, Malaysia, Singapore, Indonesia, the Philippines, Cambodia and Myanmar.
ECSB distributes a comprehensive range of ICT products like personal computers, notebooks,
tablets, printers, ... Show more content on Helpwriting.net ...
Up to 20.0 million ordinary shares of RM 0.50 were placed under Offer for Sale allocation (private
placement).
(e) Timeline of the IPO process
The below dates are tentative for IPO of ECS ICT Berhad. The application period will be open at
10.00 a.m. on 19 March 2010 and remain open until 5.00 p.m. on 31 March 2010 or such further
period or periods as the Directors of the Company and the Sole Underwriter may in their absolute
discretion mutually decide. Late applications will not be accepted. The timeline for the IPO process
for ECS ICT Berhad is as follows : Timeline of IPO process for ECS ICT Berhad
(f) List of investment banks / underwriters)
ECSB also signed the underwriting agreement with its adviser, sole underwriter and co–placement
agent, Hong Leong Investment Bank Berhad (Formerly known as MIMB Investment Bank Berhad)
for their Initial Public Offering (IPO) on the main market of Bursa Malaysia Securities Berhad.
CIMB Investment Bank Berhad also is the co–placement agent for ECSB. The underwriting
agreement was signed by ECSB's Chairman, Dato' Teo Chiang Quan and Managing Director, Mr.
Foo Sen Chin while MIMB was represented by Mr. NG Chee Kiet, Director and Co–Head,
Investment Banking and Arvin Chia Yew Kim, Head, Equity Capital

Initial Public Offering by a Company
Initial Public Offerings: An initial public offering is the decision by a company to sell its stock to
the public for the first time. In some cases, this process is described as a transaction with which an
investment banking company generates investment capital though making the company to go
public. One of the most critical aspects within an initial public offering is significant public interest
because investment bankers generate huge fees depending on the amount of capital raised.
Consequently, the interest of investment bankers is usually attracted by large or well–recognized
companies. Initial public offerings are sometimes characterized with huge gains on the first day but
they tend to flop when the financial market is cold. Overview of Initial Public Offerings: The
decision by a company to go public and sell its stock to the public is normally an expensive process,
especially for small companies. This decision is guided by a consideration of the advantages and
disadvantages involved in going public. A privately held company may decide to sell its stock to the
public through an initial public offering due to several reasons. First, such a company may engage in
an initial public offering when it seeks to raise extra capital through the sale of ownership to the
public ("Initial Public Offerings Investor Guide", par, 2). However, the most common reason is that
the capital generated through this process doesn't need to be repaid though debt securities like bonds

Initial Public Offering Paper
The focus of this paper is to examine and research the financing issues that an organization must
face when going public. The team has selected Chipotle Mexican Grill, Inc. as the organization
which has had an initial public offering in the last three years. The learning team will address
registration, disclosure, and compliance issues and cost of issuance. In addition, the team will
examine the impact on ownership control and return as well as the source and application of funds.
Financing Issues that an Organization Faces When Going PublicAn Initial Public Offering (IPO), is
extremely expensive for organizations. It is common for a small business to pay between $50,000
and $250,000 to organize and publicize an offering. According to ... Show more content on
Helpwriting.net ...
(Disclosure ,2008) In Chipotle's SEC filing they disclosed the prospectus statement, financial data,
and future plans. Through there prospectus statement Chipotle makes it clear that they are set apart
from other chains by serving "Food with Integrity". However, there are risks involved in investing,
they are as follows: the number of new stores rapidly being established, lack of independent
operating history, ability to continue to grow and profit, and health and safety concerns regarding
the ingredients used among others. Although the risk factors are in place, Chipotle's financial data
provides more assurance of returned profit on investment. In their "Rapidly Improving Financial
Performance" section of the SEC filing they state a 130% increase in revenue in 2004 of 470.7
million up from 2002 and 49% up from 2003. And, average sales in new restaurants after 90 trading
days increased 24.9% a total of $303,390. From 2002–2004 Chipotle opened a total of 237 stores.
Their increased financial growth is attributed to "word–of–mouth" sales and quicker implementation
of Chipotle culture in the area of the new restaurant. Also, more people are aware of Chipotle, thus
increasing average opening sales.( Form S–1/A ,2005) The future plans of Chipotle is to expand
operations and sales by opening new stores. They forecast opening a total of 75 stores in 2005 of
which 58 were already opened at the time of the SEC filing. In order to expand sales they plan to

What Type of Ipo Should Avaya Use
Course Number: FIN501
Module 1 Case Assignment
Introduction
Upon deciding to go public, a company looks into preparing an initial public offering (IPO). There
are two IPOs with which a company can utilize: a traditional IPO or the relatively new Auction–
based IPO that was made popular by Google. Avaya is currently planning for IPO. "Avaya is a
global leader in business communications systems. The company provides unified communications,
contact centers, data solutions and related services directly and through its channel partners to
leading businesses and organizations around the world" (Avaya.com, 2011). Avaya's current plan of
an IPO valued at approximately $1 billion (Klassen, 2011) needs to consider whether to go with a ...
Once this process has finished, the investment bank is paid a percentage of the sale as commission
as well as fees for the underwriting process. Due to the discount of the IPO from the estimate of the
market value, traditional IPOs normally trade much higher than the initial price (Clinton, 2011).
Being a long used and well known process, traditional IPOs allow for more choices of underwriters.
Using an investment bank with experience in traditional IPOs allows for the road show to give the
high profile investors a greater idea of the value of the company, and since the allocation of shares is
done during this process they can avoid over–valuing the company. Nayantara Hensel writes that
underwriters who do less than three IPOs a year will average a first day price increase of 10%. On
the other hand Hensel also tells us that the average first day price increase for all traditional IPOs is
38%, meaning a loss in the potential capitol for the company. The investment bank underwriting for
a traditional IPO normally gets a 7% underwriting fee of the amount earned or more, bringing the
potential money lost to 45–50%.
Auction–Based IPO An auction–based IPO uses the Internet to open a company's IPO stock for
purchase to more potential investors. This process allows a company to spend less on their
underwrite fees. The company

The IPO of XYZ Construction Inc. Essay
XYZ Construction Inc. like many other organizations has outgrown its geographical boundaries and
as a result the leadership team plans on expanding its horizontal construction nationally and
internationally. du Plessis (2009) suggested that globalization and internationalization challenges are
now demanding that organizational managers fine–tune or draft new policies and procedures to stay
competitive in the global markets. As such, the leadership within XYZ Construction Inc. has also
decided to transition from a private to a public ownership construct and launch its initial public
offering (IPO). Going forward there is a number of issues that need to be briefed to the executive
level within XYZ Construction, Inc. Specifically, there ... Show more content on Helpwriting.net ...
One of the reasons is that Chinese IPO markets are known to be extremely underpriced and as a
result China ranks first among 45 countries with respect to IPO underpricing. Guo et al. (2011) also
suggested that there is a great number of optimistic investors waiting for high initial–day returns
despise the greatly reduced potential benefit from IPOs, nevertheless they are still thought to be
highly profitable. Lastly, during the last decade or so the IPO market in China has developed and
maintained a good track record for profits. Consequently, the China example is encouraging to
support the investors' desire to launch XYZ Construction, Inc. IPO, which as aforementioned may
very well benefit from an underpriced IPO market. Additionally, it is prudent to point out that there
are expenses associated with an IPO yet these are worth in the long run. As suggested by Booth
(2011.) "Underpricing comes at the expense of the original owners and venture capitalists of the
issuing firm" (Booth, 2011, p. 4). However, there is a general tendency that investors do not sell
their shares after the lockup period expires, nevertheless, underpricing will be considered a
predictable cost of going public (Booth, 2011). Lastly, XYZ Construction, Inc. stakeholders should
realize encouraging results as capital is generated while simultaneously growing the market capital
in both domestic and international markets.
Employment and Labor

week 5 370 team paper
John doe
FIN 370
Dec 13, 2014
John doe
Introduction To get a small business to be successful increase must occur. Increase in a company
sometimes happens either by funding through debt or equity. IPO's can be quite useful in the strong
growth of a company and are extremely complicated involving many crucial role players. We shall
additionally insure the dangers involved with creating an IPO and how safety regulations offer with.
Additionally an problem which will increased variable to the IPO of a worldwide business is going
to function as the problem of foreign currency exchange rates. These rates may also be mentioned
and how they could be coped with.
Role of Investment Banker and ... Show more content on Helpwriting.net ...
Those shares more than these sold are bought by the investment company.
Originating house and syndicate
In the IPO to get a international business, the business that handles the underwriting is known as the
originating residence (Mayo, 2012). These businesses have bought the securities from an
organization that is attempting to improve capital and after that searches to offer the lists to the
public. The entire process of selling these securities isn't always managed by one business. Together,
the brokerage companies underwrite the firm's offerings and offer them to the public. The edges of
numerous businesses joining together to fingers the sale of a organizations offering is more
accessibility to possible buyers also in addition it reduces the quantity of securities each business
must sell. The dispersing of the selling procedure reduces the chance for every business involved
with the method.
Pricing the offering
When establishing costs for securities, there are various variables which affect the purchase price.
Prior to listing a certain cost, underwriters should conduct numerous study of info through the
enterprise to learn exactly what the greatest for the business. There are frequently times when costs
may be at an wrong sum which may possess an adverse effect on exactly what the business was
wanting to be successful. When a cost is a lot higher, it may create a business possess a monetary
weight. In circumstances like this, there are

Key Facts Of Netscape Communication Corporation
Summary of Key Facts
Netscape Communication Corporation was founded in April 1994. "The company provided a
comprehensive line of client, server and integrated applications software for communications and
commerce on the Internet and private Internet Protocol networks" (P1) Netscape developed a
popular product which offers a variety of internet functions at 1994. The product was outstanding
back to that era, and it was successfully taking large amount of market share for the company. Since
the market environment was favoring those Internet related companies, and as well as the
technology boom at the late 1990's, Netscape Corporation had a great chance to growth their
business. Therefore, they further developed a server software, which can ... Show more content on
Helpwriting.net ...
At this new offering price, the firm's value would be $1 billion. The board was facing a pricing
dilemma whether to approve or reject underwriters' recommendation at such unpredictable industry.
Question#1:
The reason Netscape has been so successful to date could be attributed to many factors. First,
Netscape has the most successful product was the leading client software program that allowed
individual users to exchange information and conduct business over the internet, it has been the
most user–friendly 'click–and–point' browser among competitors. Second, the market environment
was good to those technology companies, there were 57 million internet users, at mid–1995, and it
was growing rapidly. Netscape also was the first mover in the industry, and their products captured
75% of the market by early 1995.
As a new company, their strategy was "giving away today and make money tomorrow" it offered
users the free access to its software in order to build a customer base as well as the foundation of
entering the internet market. Moreover, in order to set the industry standard, Netscape created a rival
program to destroy Mosaic. After that, they focused on the web browser market and sold server
software to companies that wanted to enter the market and attract potential customers.
In order to maintain growth in the long run, Netscape needs to have a good financial statement,
according to exhibit1, Netscape had total $4.67million operating loss at the

In this paper the questions regarding a businesses decision to go public will be addressed. Recent
changes such as Sarbanes–Oxley governance ruling have had significant impact on the planning and
execution of IPO's however, going public still remains the best route to additional capital for a
company. We will also take a look at Google's successful rollout of their public offering. However
first we need to look at what it takes for a company to go public. In the text of the Fundamentals of
Corporate Finance the initial description of IPO succinctly captures the essence of need and
subsequent process of an IPO.
Firms issue shares of common stock to the public when they need to ... Show more content on
Helpwriting.net ...
After the SEC approves of the corporation's full disclosure, the corporation and the underwriter
decide on the price and date of the IPO; the IPO is then conducted on the determined date. IPOs are
sometimes postponed or even withdrawn in poor market conditions. (Investors Guide, 2006)
A small business to pay anywhere from $50,000 and $250,000 to prepare and publicize an Initial
Public Offering. The most common known direct costs of IPO are multiple, filing fees, legal fees
and taxes, there are however some additional costs. "A small business owner should not be surprised
if the cost of an IPO claims between 15 and 20 percent of the proceeds of the sale of stock. Some of
the major costs include the lead underwriter's commission; out–of–pocket expenses for legal
services, accounting services, printing costs, and the personal marketing "road show" by managers;
.02 percent filing costs with the SEC; fees for public relations to bolster the company's image; plus
ongoing legal, accounting, filing, and mailing expenses."(Answers.com) Even with all these
expences it is possible for the additional fees to come up of for the IPO not to take place at all.
When sale does take place it is common for underwriters offer IPO shares at a discounted price to
ensure an increase in stock price during the period immediately following the offering. This
discount allows the transfer of wealth from the initial investors to new investors. Under pricing is
the pricing of

My Research on Initial Public Offerings
As I began to do research on IPO's, I wanted to make sure that I had a clear understanding of what
exactly an IPO was. Initial Public Offering can be defined as the first sale of stock by a formerly
private company. An IPO (Initial Public Offering) can be used by either small or large companies to
raise expansion capital and become publicly traded enterprises. Many companies that undertake an
IPO also request the assistance of an Investment Banking firm acting in the capacity of an
underwriter to help them correctly asses the value of their shares, that is, the share price.
http://www.ipoinitialpublicofferings.com/ipo–definitions.htm#Initial_Public_Offering2
The going public process is an expensive consideration, and even more so for ... Show more content
on Helpwriting.net ...
It also uses one non–GAAP measure that isn 't unusual at all for unprofitable companies: free cash
flow, which generated $72.2 million and $36.8 million in 2010 and the first half of 2011,
respectively. –By Lynn Cowan, Dow Jones Newswires; 301–270–0323;
lynn.cowan@dowjones.com ––Nathalie Tadena contributed to this article.
After going through the hurdle of using GAAP and some non essential accounting format Groupon
needed investor before going public. To my surprise, while the country if going through a recession,
Groupon had several companies/ individuals lined up too invest in this endeavor. It appears without
hesitation the investors came running in. The following paragraph is an excerpt from the edition of
the Wall Street Journal. In January, Groupon announced it clinched a whopping round of fund
raising that gave Groupon a cash cushion (and money for early investor to cash out some of their
shares). Remember this cash flotation device came after Groupon gave the back of the hand to
Google and its acquisition deal worth up to $6 billion.
The fund– raising round, according to people familiar with the matter, valued Groupon at $4.875
billion. A ballpark valuation number has been reported previously by TechCrunch. Here is a partial
list of firms that invested in Groupon in the fund raising round that closed in January, according to
Groupon's IPO filing, and their estimated paper windfall based on Deal Journal's reporting. We don't
know yet if any of these

JetBlue airways IPO valuation
Case study–JetBlue airways IPO valuation Introduction: As a leader of airways industries, JetBlue is
successful because of professional services and a good management team. In 2002, JetBlue became
a public company. Despite the fact that US airline industry had witness 87 new airline failures over
the previous 20 years, Jetblue overcame difficulties and expressed confidence in the bright future.
Before going public Before going public in 2002, JetBlue has outstanding advantage in the whole
industries. Because of the good performance by management team (CEO: David Neelman,President
and COO: David Barger ,CFO: John Owen), JetBlue provided good services which include new
aircraft, leather seat, free live TV at every seat and high ... Show more content on Helpwriting.net ...
It is proved what Jonathan Schrader said is right. Due to the large investment, the company will
decrease the cash in hand for next coming years. The table 1.3 shown the NPV and discount cash
flow in the next 10 years. Discount Cash Flow 2002 2003 2004 2005 2006 2007 2008 2009 2010
NOPAT 53 89 119 149 181 195 248 270 292 NWC –29 –31 –32 –31 –34 –36 –34 –24 –24 CapX –
290 –328 –325 –310 –326 –342 –299 –157 –133 FCFE –266 –270 –238 –192 –179 –183 –85 89
135 DCF –242 –232 –193 –131 –111 –103 –45 42 59 NPV –950 From the table, it can be seen that
for each year, JetBlue has an increase in both NOPAT and net working capital which means the
company continue to invest in the future. So we use the next 10 years data and information to
calculate the value of NPV. After that we use the WACC to calculate the share price, the table 1.4
shows the calculation of share price. per sahre value FCFE in 2010 135 WACC 10.09% Growth rate
7.07% Terminal value $4,850 PV TV $2,060 Enterprise value $1,100 share outstanding $41 per
share $28.58 The result of

Essay On Access To Capital
Access to Capital
A public offering of stock can vary from $500,000 to over $1 billion. In 1999, 544 companies
completed an IPO(Initial Public Offering). The total capital raised from these offerings was $23.6
billion. By offering stock for sale to the public a company can access a substantial source of
corporate funding.
If a company needs to raise capital, it can sell stock(equity) or it can it issue bonds(debt securities).
An initial equity offering can bring immediate proceeds to a company. These funds may be used for
a variety of purposes including; growth and expansion, retiring existing debt, corporate marketing
and development, acquisition capital and corporate diversity.
Once public, a company 's financing alternatives are ... Show more content on Helpwriting.net ...
In this example, a public company could have a competitive advantage over a private enterprise. An
IPO can indicate credibility to a company 's customers, which may lead to increased sales and a
greater corporate profile.
Once public, lenders and suppliers may perceive the company as a safer credit risk, enhancing the
opportunities for favorable financing terms. Also, a public offering can create publicity that is
effective when marketing your company.
Image
Public firms tend to have higher profiles than private firms. This is important in industries where
success requires customers and suppliers to make long–term commitments.
For example, software requires a significant investment in training and no manager wants to buy
software from a firm that may not be around for future upgrades, improvements, bug fixes, etc.
Indeed, the suppliers ' and customers ' perception of company success is often a self–fulfilling
prophecy.
Publicity
A public offering of stock can generate prestige, publicity and visibility, which is effective when
marketing your company. Public companies are more likely to receive the attention of major
newspapers, magazines and periodicals than a private enterprise.
A strong ad campaign coupled with media initiatives can potentially increase sales and revenue. The
publicity received from a public offering encourages new business development

Feasibility Report On Ipo's, And The Process Of Buying An Ipo
I compile, through various mediums, information regarding initial public offerings, or IPO's. The
report includes areas such as defining an IPO, the performance of IPO's, the current market for
IPO's, and the process of buying an IPO. Therefore, the feasibility report is directed at the retail or
non–professional investor who may be engaged in purchasing IPO's. I look to determine if the
underlying facts create certainty that these instruments are profitable currently and in the long run. It
appears through study that investors have increased their consumption of initial public offerings
since the 2007–2008 financial crisis. Many investors believe purchasing IPO's can create quick
realized gains. However, it appears that the performance of these issues has lagged the broader
market, which in my opinion should steal zeal from these risky investments. The figures throughout
this report should indicate and reaffirm that not all IPOs, whether popular or unpopular, will benefit
the professional or non–professional investor. It must be noted that not everything is the same in
financial markets and results may vary significantly from this report in a single incident or sample
study. INTRO Over time, financial markets have become more complex and possibly more
confusing for the average or retail investor. It appears through recent observation that non–
professional investors do not understand the process, importance of, and potential harm that IPO's
may cause to a portfolio in the

Initial Public Offering For A Global Firm
Initial Public Offering for a Global Firm
Introduction
Initial Public Offering is a rigorous process where a firm decides to go public in order to enable it
raise capital for the company that will enable it to fund its operations such as expansion plans,
generate profits as well as make its investors happy. For the IPO to go successfully there are a
number of important factors and players that come into consideration. These include investment
bankers, underwriters, pricing, demand and supply among other important factors.
The role of investment Banker and underwriter
Investment banker plays an integral role in the IPO process as when a firm decides to go public it
must hire an investment banker to conduct the whole process on its behalf. ... Show more content on
Helpwriting.net ...
Once the value of the stock has been determined, the offer price will then be set according to market
survey for the demand of the stock for the company that is about to go public.
Price performance of the IPO will largely depend then on the offer price as well as the demand and
the supply for the same. For instance, if the offer price is close to market price then chances are the
stock will most likely drop more so if investors are rational. On the other hand if the offer price is
quite lower than the market price then the prices of the stock will most likely rise very fast since
institutional investors will rush for the same hence raising prices
The discovery period is another important factor that affects prices of the stock. Normally the
discovery period should not be more than 30 minutes as any increase to more than 1 hour tends to
make prices drop since that will signify lack of rush for the IPO.
Finally, technical challenges that often affect the IPO are a determinant factor. For instance, during
IPO in 2012, the Nasdaq Security Market marred with huge technical failures contributing to
underperformance of the much anticipated Facebook IPO.
Risks involved in the public offering and how securities laws deal with them
There are numerous risks that firms, owners, investors are usually faced with during the IPO
process. One of the main ones is the lack of history pertaining to a particular stock to ascertain the

Ipo Case Study
FIN F314
Investment Banking and Financial Services
IPO Case Study:
Bajaj Corp Ltd
A.Sai Sravan 2013AAPS117H
K.Chaitanya 2013AAPS094H
T.Raghunandan 2013AAPS148H
M.S.R Karthik 2013A1PS808H
Abstract
This case study describes the IPO of Bajaj Corp Ltd., the second largest company in the Shishir
Bajaj Group of companies. It also enlists the objectives and the process of the IPO, issued on 02–
08–2010. It describes the merchant bankers and underwriters involved, and discuss post–issue
effects on the company.
Introduction
The company was incorporated at Mumbai as a private limited company, with the Registrar of
Companies, Maharashtra, under the Companies Act, 1956 as Bhaumik Ago Products Private
Limited pursuant to a Certificate ... Show more content on Helpwriting.net ...
Underwriting is an agreement to subscribe of a corporate body when the existing shareholders and
the public don't.
Kotak Mahindra Capital Company Ltd and Kotak Securities Ltd are the underwriters for this issue.
Issue Process
This issue was a book built offer. Book building is a systematic process of generating, capturing,
and recording investor demand for shares during an initial public offering (IPO), or other securities
during their issuance process, in order to support efficient price discovery.
In terms of Rule 19(2)(b) of the Securities Contracts (Regulations) Rules, 1957 (SCRR), this being
an issue for less than 25% of the post–Issue capital, the Issue is being made through the 100% Book
Building Process wherein at least 60% of the Issue shall be allocated on a proportionate basis to
Qualified Institutional Buyers (QIB) Bidders.

Issue Subscription Detail: Objectives of the Issue:
Promote future products
Acquisitions and other strategic initiatives
General Corporate Purposes.
Issue Details
100% of the issue was offered through equity shares. There are no bonds, preferential stock,
debentures for this

Case Study Of Ipo In Airtel
Objective: To study the Initial Public Offering of Bharti Infratel Ltd. Critically examine the success
rate of the IPO and evaluate the stock performance since list date.
Abstract: The paper examines the IPO of Bharti Infratel Ltd., one of the top ten IPOs by amount of
capital raised in Indian history. The IPO is also interesting to study as Bharti Infratel is one of the
first telecom tower and infrastructure provider companies in India and GTL Ltd. is the only other
Indian company in this sector to have gone public till date. The scope of the paper is to understand
the rationale behind raising capital with respect to internal factors as well as industry specific
factors. Further, a critical analysis has been conducted on the IPO activity ... Show more content on
Helpwriting.net ...
Data Source: (Deloitte Touche Tohmatsu India Private Limited, 2015)
Rationale for Bharti Infratel Ltd. IPO:
The Company was established in July 2007, as a spin–off from Airtel, to provide tower
infrastructure services to telecom players in the market.
Strategy: The Company was looking at expanding its tower business to cater to not only Airtel but
also other players and hence needed to raise capital for the huge capital expenditure required for
building its tower infrastructure.
Industry Factors: Indian telecom network is the second largest in the world after China. India has
864.72 Million wireless telephone connections and a tele–density of 73.34% as on December 2012.
(Dept. of Telecom, Government of India, 2012–2013)
The Company is expected to benefit from the increase in penetration of voice and data services in
India, which will drive the telecom companies' demand for additional towers. The tenancy ratio is
expected to increase as telecom players roll out 3G/4G on 2100 MHz and 2300 MHz bands.
Network expansion by India's leading telecom majors – Bharti Airtel, Vodafone and Idea Cellular
Ltd – will work in Bharti Infratel's favour. Large–scale operations, first–mover advantage and pool
sharing arrangement among the top three telecom majors is expected to improve Bharti Infratel's
operating leverage and

Initial Public Offerings
Initial public offerings
Initial public offerings
Keith Broomfield Jr
Trident University
FIN501 Strategic Corporate Finance
Professor: John Halstead
Summer 2013
Keith Broomfield Jr
Trident University
FIN501 Strategic Corporate Finance
Professor: John Halstead
Summer 2013
Module 1 Case
Module 1 Case
1) What type of IPO should AVG use–a traditional IPO or an online auction? Based on your analysis
and findings, what would you recommend to the executives of AVG? Explain your reasoning in
detail. As I understand the formula/process. Most IPO's are underwritten by an investment banking
organization that specializes in providing venture capital to launch an organization toward a public
offering. Once the valuation of the ... Show more content on Helpwriting.net ...
cash from sales) and external sources of finance from outside the business (e.g. a bank loan)." There
is a need of external financing for the expansion through acquisition. External financing is a good
source of raising money besides internal funds. As per business finance, "external financing can take
the shape of two different types of financing, debt or equity. Debt financing includes bank loans
where a company gets financed by issuing debentures which they have to pay back after a certain
period of time. It is called debt financing because the company is in debt to the bond holders and if
they were to go bankrupt, the bond holders would have claim to any remaining assets. In this case
these are secured business loans. Equity financing is when a company decides to give up ownership
in the company to raise funds. This is usually done by selling company stock to investors.
Sometimes this could include seeking out angel investors or venture capitalists. If you are expecting
to get external financing through equity financing make sure that your business has a product or
service that is unique, and that there is a high demand for your product or service. Most venture
capital investors or even angel investors will not look at an offer unless they see a large growth

potential." (2)
IPO is a part of equity financing. Equity financing is when a company decides to give up ownership
in the company to raise funds. This is usually done by selling

Advantages And Disadvantages Of Ipo

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