Valuation Of An Ipo : Are You Worth It?

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.

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

-Determine the profile of the investor for which this company may be a fit, relative to that potential investor’s investment strategy

* What is an Initial Public Offering and why is it such a big deal?

I-1) A publicly traded company has issued securities through IPOs and is traded on a U.S. stock exchange.

Note: Here the lead underwriter has the option to buy new shares from the IPO company at the original IPO offer price.

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.

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

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 IPO (initial public offering) process is defined as the moment in which a company begins selling stock shares to the general

This paper formulates a simple model to examine IPO underpricing by reviewing the financing strategies that start-ups companies are facing. In the analysis, an entrepreneur with a good technology and good management is unable to receive a satisfactory acquisition offer from a venture capitalist because of uncertainty about technological type and lack of diversification. For these reasons, if the entrepreneur also has a good managerial aptitude, he decides to go public and implement the project for himself. Otherwise, he would rather be acquired by venture capitalist.

Our data includes public companies that have passed the IPO stage because KLD MSCI data is only available for public companies. In order to control for a potential bias in our analyses due to the choice of receiving venture backing among IPO companies, we gather a comprehensive data on an initial sample of 12,010 IPOs from the period 1991-2015 from the Securities Data Company (SDC) database. Following previous researchers, we eliminate offerings (i) identified as unit offerings (ii) not involving common stock, (iii) of very small issues with offer size below 5 million dollars in order to eliminate penny stocks from our sample (Bradley, Cooney, Dolvin, and Jordan, 2005), and (v) for which SDC did not provide information required for our tests.

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.

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

After establishment of electronic depository, transfer of shares and process involved in it became simpler. In any IPO, there is a retail portion of IPO in order to encourage small scale investors. Hence there was greed among people to get the maximum of the retail portion in order to earn a higher profit because the big companies’ IPO always had a lower issue price than the list price. Hence a huge margin of profit can be earned from such shares. IPOs of these companies were oversubscribed so as to have a maximum chance of allocation of shares.