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Trx Finance Case

Decent Essays
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 *
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