Case 2: IPO Analysis: Select a company that has gone public in the last few years
Select a company that has gone public in the last few years* on an organized exchange anywhere in the world. Prepare a typewritten paper, double spaced, no longer than 3 pages plus bibliography listing sources of information. Include as many exhibits as you wish. (* It is wise to select a more recent IPO as you will obtain more information than an IPO that was listed more than 10 years ago).
Start out with an introduction of the company, including the business it is in, and when it was established. Then address the following issues:
1. Introduction of company. What business is the company in? When was the company established? When did the company go public? Why did the company decide to go public?
2. What exchange lists the stock? Why did the company decide to list on that exchange. What is stock symbol?
3. Who was the investment banker? Why did the company choose that investment banker? Was IPO done on an underwritten or best efforts basis? How much was paid to the investment banker?
4. How many shares were issued? What portion of the company did insiders retain?
5. What was the offer price per share? How was the offer price decided? How much money was raised? What did the company do with the money?
6. Has stock price changed since IPO? What was the price at end of first day? Estimate the amount of underpricing? What is current price, and calculate the returns if an investor purchased at IPO price and held it till today.
7. Would you invest in the company today? (Consider the future prospects of the firm)
You should be able to find all, or most of the information needed for this case. However, if you just can't find information on a particular issue, include a note to that effect so I'll know you didn't just overlook it.
Select a company that has gone public in the last few years* on an organized exchange anywhere in the world. Prepare a typewritten paper, double spaced, no longer than 3 pages plus bibliography listing sources of information. Include as many exhibits as you wish. (* It is wise to select a more recent IPO as you will obtain more information than an IPO that was listed more than 10 years ago).
Start out with an introduction of the company, including the business it is in, and when it was established. Then address the following issues:
1. Introduction of company. What business is the company in? When was the company established? When did the company go public? Why did the company decide to go public?
2. What exchange lists the stock? Why did the company decide to list on that exchange. What is stock symbol?
3. Who was the investment banker? Why did the company choose that investment banker? Was IPO done on an underwritten or best efforts basis? How much was paid to the investment banker?
4. How many shares were issued? What portion of the company did insiders retain?
5. What was the offer price per share? How was the offer price decided? How much money was raised? What did the company do with the money?
6. Has stock price changed since IPO? What was the price at end of first day? Estimate the amount of underpricing? What is current price, and calculate the returns if an investor purchased at IPO price and held it till today.
7. Would you invest in the company today? (Consider the future prospects of the firm)
You should be able to find all, or most of the information needed for this case. However, if you just can't find information on a particular issue, include a note to that effect so I'll know you didn't just overlook it.
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