Ipo
Ipo
Ipo
(IPO)
Objectives
Define
an IPO.
Identify the advantage and
disadvantages of IPO.
Discuss the process of going public.
Differentiate the kinds of underwriting.
AN EXAMPLE
XURPAS
INC.-engage in
creation and
development of digital
products and services to
mobile end-users.
New capital
Future capital
Reporting
Loss
responsibilities
of control
Is it a good time to do an
IPO?
There
Select an underwriter
Register IPO with the SEC
Print prospectus
Present roadshow
Price the securities
Sell the securities
1. Select an underwriter
Underwriter Selection
Factors to consider:
Lead Underwriter
Types of underwriting
Firm
Best
commitment underwriting:
efforts underwriting:
Goldman Sachs
Morgan Stanley
Merrill Lynch
3. Print prospectus
The
4. Present road-show
The
road-show is presented to
institutional investors around the country
The road-show allows firms to raise
interest in the company and thus the
price
Allows the firm and its underwriters to
gather information from potential
purchasers
Marketing
23%
24%
37%
276%
-7%
The End
Any Questions???
Seatwork
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