Why Company Go Public
REASON FOR PT. BANK CENTRAL ASIA, Tbk
TO GO PUBLIC
INITIAL PUBLIC OFFERING
William 1140004383
BINUS BUSINESS SCHOOL
PROGRAM STUDI MAGISTER MANAJEMEN BUSINESS MANAGEMENT
BINUS UNIVERSITY
JAKARTA
2010
List of Content
List of Content 2 Definition 3 Reasons for listing 3 Advantages of an IPO 5 Disadvantages of an IPO 5 Procedure 6 Bank Central Asia History 7 Bibliography 9
Definition
An initial public offering (IPO) or stock market launch is, as it sounds, the first sale of a company’s shares to the public and the listing of the shares on a stock exchange. In the UK, IPOs are often referred to as flotation. IPO was originally an American term but is now used across all world markets. The shares offered may be existing ones held privately, or the company may issue new shares to offer to the public. Companies choose to offer shares to the public to raise new capital for the company; to widen the shareholder base of the company; to give the shareholders a liquid market in which to trade their share; achieve the publicity that a public listing brings. Companies might choose to list on the market by a private placing of shares to institutions rather than a public offering. There have been several online flotation sometimes referred to as EPOs (Electronics Public Offerings). 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 assess the value of their shares, that is, the share price.
Whoever is raising the funds, the process of flotation is arduous, involves significant time commitments from the company’s management and advisor (investment bankers, stockbrokers and solicitors amongst others), and is not cheap. This effort is expended in order to raise the cash required at a price that keeps both the vendor and the purchaser of the shares happy.
Reasons for listing
When a company lists its securities on a public exchange, the
TO GO PUBLIC
INITIAL PUBLIC OFFERING
William 1140004383
BINUS BUSINESS SCHOOL
PROGRAM STUDI MAGISTER MANAJEMEN BUSINESS MANAGEMENT
BINUS UNIVERSITY
JAKARTA
2010
List of Content
List of Content 2 Definition 3 Reasons for listing 3 Advantages of an IPO 5 Disadvantages of an IPO 5 Procedure 6 Bank Central Asia History 7 Bibliography 9
Definition
An initial public offering (IPO) or stock market launch is, as it sounds, the first sale of a company’s shares to the public and the listing of the shares on a stock exchange. In the UK, IPOs are often referred to as flotation. IPO was originally an American term but is now used across all world markets. The shares offered may be existing ones held privately, or the company may issue new shares to offer to the public. Companies choose to offer shares to the public to raise new capital for the company; to widen the shareholder base of the company; to give the shareholders a liquid market in which to trade their share; achieve the publicity that a public listing brings. Companies might choose to list on the market by a private placing of shares to institutions rather than a public offering. There have been several online flotation sometimes referred to as EPOs (Electronics Public Offerings). 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 assess the value of their shares, that is, the share price.
Whoever is raising the funds, the process of flotation is arduous, involves significant time commitments from the company’s management and advisor (investment bankers, stockbrokers and solicitors amongst others), and is not cheap. This effort is expended in order to raise the cash required at a price that keeps both the vendor and the purchaser of the shares happy.
Reasons for listing
When a company lists its securities on a public exchange, the
Bibliography: Geddes, Ross. IPOs and equity offerings. Burlington : Butterworth-Heinemann, 2003. "financeglossary" Great Investor Network. 7 January 2011 <http://www.finance-glossary.com> "::BCA::" PT. Bank Central Asia. 7 January 2011 <http://www.klikbca.com> "Tempointeractive.com – Perjalanan BCA sejak 1997" Tempo Interaktif 26 Februari 2002. 7 January 2011 <http://www.tempo.co.id/hg/ekbis/2002/02/26/brk,20020226-17,id.html> "Initial Public Offering" Wikipedia. 7 January 2011 <http://en.wikipedia.org/wiki/Initial_public_offering> "Bank Central Asia" Wikipedia. 7 January 2011 <http://en.wikipedia.org/wiki/Bank_Central_Asia>