Warburg Pinus Case

We also know that Louis was contemplating a possible IPO exit strategy before the end of the holding period term. To estimate a multiple for this IPO exit, we need to look at the Price/Earnings ratio for Dollarama. Using the same methodology as above, we compared Dollarama to the same group of companies and computed the average P/E ratio for the set, see Exhibit 6a. We will consider the values for the year 2005 and will take a multiple of 24.6 for an eventual IPO exit.

The share price of $270,000 was significantly higher because the “fair value” as perceived by the dissenters, which accounted for the chance of an IPO. Taking into account the recently traded Kohler Co. share prices, the book value of a share, and the possibility of an IPO greatly inflated what the perceived value of each share should be. While Kohler believed their voting control and ownership structure would remain the same, the shareholders believed otherwise. Because shareholders assumed Kohler would go public, they argued for a higher valuation so as to receive the highest price, and thus profit, in the buyout.  So based on the highest MVE, we picked Masco as the comparable firm of choice. Using Masco’s MVE, $9838.8, and LTM EBIAT, $437.3, we solved for Masco’s P/E ratio, which was equal to 22.5. By multiplying the P/E ratio by Kohler’s LTM EBIAT (22.5 * $93.76), we projected a market value of $2,109,610,000.  To solve for estimated share price, we divided the projected market value by 7,587.89, the number of shares outstanding to obtain an estimated share price of $278,023.47. This estimate is near the $270,000 per share offer price.

Ross, S. A., Westerfield, R. W., & Jordan, B. D. (Eds.). (2011). Essentials of corporate finance (7th ed., Rev.). New York, NY: McGraw-Hill Irwin.

Nowadays, the prestige of the New York Stock Exchange (NYSE) is clearly attracting a large number of Chinese companies. Commonly, firms such as Alibaba seek to launch initial public offers (IPO) in foreign markets raising the capital that the firm needs to expand its businesses across the globe. Nevertheless, to deal with stock market reactions after an strong debut represents a great challenge for large corporations. Spinal (2014) states that “buying the shares of fundamentally strong companies soon after they hit the public market is fraught with the risk of short-term losses for retail investors”. Certainly, IPO initial returns are profitable, but it is important to consider the dramatically fluctuation that it may face due to volatility and high information asymmetry.

company was featured on the NYSE landing page because it held its initial public offering (IPO)

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.

This document does not constitute buying advice or offer and should not be relied upon in connection with any contract, purchasing, or investment decision. The information contained in this document is privileged and confidential, intended for use during personal pre-ICO stage, for the eyes of friendly investors

The Ameritrade IPO had only been issued in March 1997. Therefore, in order for Ameritrade to analyze its potential investments, it needed to compare the Betas of other similar companies since calculating a Beta based on its own stock price was not yet feasible. In order to do such an analysis Ameritrade needed to determine its type of business. It had two options: a traditional full service broker or a deep discount online brokerage firm.

Historical data on the indexes of closing prices (see Exhibit 14) attest that the current market trend is very different to the market trends for some of the benchmarks used (i.e. West Point Pepperall/Cluett, Peabody). In addition, it is difficult to determine the true nature and equatability between the proposed benchmarks and Interco for each company can differ in its cash flow and revenue growth, its riskiness, and its future expansion opportunities. In consequence finding comparable ratios becomes increasingly problematic and challenging. Thus, the issues that are specific to Interco limit the strength and validity of the valuation analysis. One must also note that comparable transaction analyses do not account for premiums or synergies gained in a transaction.

The management of JetBlue and its underwriters can also price the IPO using valuation multiples. JetBlue can employ the most current comparable data of the most appropriate competitors in terms of value in the airline industry. Valuation multiples that can be employed include, but are not limited to P/E multiples, EBIT multiples, EBITDA multiples. In this scenario, I choose to use Southwest airlines and Ryanair as the major benchmarks, because they are both considered as major low –fare airlines, and are key competitors in the United States and Europe. Nevertheless, I believe the P/E ratio is the stronger valuation tool to determine the true value of a firm. Using this method we come up with a share price of $19.32 for Southwest

     Methodology: To prepare this report, the staff of EC=2 gathered most of the information from the Internet, especially the companies' Web pages. In addition, the staff obtained annual reports from the companies and data from both the NYSE and NASDAQ

A financial performance comparison between Baldwin and Ferris during a three-year period can be determined by analyzing the financial data of both companies that include their stock price, dividends, earnings per share as well as their bond ratings. This analysis will focus on why the trends and changes occurred, and ultimately how decisions affected Baldwin’s performance and their impact in the company’s overall

The Equity Capital Markets Group at TD Securities Inc. is a leader in the origination, structuring, marketing and execution of all equity and equity-related products. TD Securities Inc. in The Equity Capital Markets Group has book run transactions in a wide range of sectors and products with underwriting activities ranging from initial public offerings and follow-on offerings to monetization and private placements. There are several areas of product expertise which include:

Once a “worldwide” standard is reached, investors will easily compare information on multi-national companies and make more informed decisions.

C. What impact does Wiebold's stock split have on (1) total stockholders' equity, (2) total par value, (3) outstanding shares, and (4) book value per share?