IPO: Operating in highly concentrated market Higher level of insider ownership and asset Low level of leverage and liquidity BDL Upon listing: * IPO may exhibit a higher level of liquidity - evidence reported by Gleason et al. (2006) suggests that RTO firms tend to have lower liquidity than matched IPOs. * RM firms tend to be smaller and are still operating at a developmental stage Comparison: 1) BDL does not require disclose of the information and undertake no capital raisings
Premium Public company Initial public offering Privately held company
known as capital. This provides an opportunity for investors who trade their money for potential future profit. Both private placements and initial public offerings‚ or IPOs‚ are methods of raising capital for a business. Initial Public Offer (IPO) | Private Placement (P.P) | The first sale of stock by a company to the public. IPOs are often used as a way for a young company to gain necessary market capital. When a company goes public‚ its financial data and corporate structure become public as
Premium Initial public offering Public company Security
eBay: “The world’s largest online marketplace”- A Case Study J.Gopalkrishnan* V.K Gupta** Abstract eBay‚ Inc. is the largest and most popular marketplace on the Internet‚ allowing members to buy and sell almost anything. Launched in 1995‚ about 147 million people now use eBay. An estimated 430‚000 people in the United States make all or most of their living by selling on eBay. eBay’s online payment service‚ called PayPal‚ enables transactions nearly anywhere in the world. eBay proclaims “trust” between
Premium Electronic commerce Auction Strategic management
Echo Bay Technologies – eBay International business June 2nd 2010 Outline I. Overview II. Echo Bay Technologies Market Entry Strategies III. Columns for 2007 and 2010: Internet Penetration in Latin America IV. Market features/characteristics of Latin America that must be understood by eBay V. A characteristic of eBay’s ideal or perfect strategic position after 2005 VI. Ebay’s Marketing Strategy for Latin America for 2001 to 2005 VII. Conclusion and Recommendation Echo Bay
Premium United States Marketing Latin America
Case study—JetBlue airways IPO valuation Introduction: As a leader of airways industries‚ JetBlue is successful because of professional services and a good management team. In 2002‚ JetBlue became a public company. Despite the fact that US airline industry had witness 87 new airline failures over the previous 20 years‚ Jetblue overcame difficulties and expressed confidence in the bright future. Before going public Before going public in 2002‚ JetBlue has outstanding advantage in the whole
Premium Stock market Initial public offering Stock
JetBlue Airways IPO Valuation Summary In July 1999‚ David Neeleman announced his plan to launch a new airline that would bring “humanity back to air travel.” Despite the fact the airline industry had 87 new-airline failures in U.S. over the past 20 years. Neeleman’s plan convinced a group of investors and quickly raised $130 million from venture-capital community. This is the way JetBlue Airways established. With its strong capital base‚ JetBlue acquired a fleet of new Airbus A320 aircraft and focused
Premium Initial public offering Stock Bond
Chapter I Introduction 1.1 Background Initial public offering (IPO) refers to the first sale of company’s securities so as to collect funds from the general public. Securities are brought in the primary market to develop the liquid market of the company. Capital is the most important factor for the development and success of an organization. Capital plays an essential role at every stage of the business. Seed money invested at the start of the business plays the vital role. For a newly established
Premium Stock exchange Stock market Initial public offering
Electronic copy available at: http://ssrn.com/abstract=1609817 CREDIBILITY OF THE IPO GRADING: TIME TO RETHINK KARTIKEY MAHAJAN & MALLIKA ANAND Prologue Initial Public Offer (hereinafter as ‘IPO’) in the new regime (which started as an innovation) has to be mandatorily graded by a Credit Rating Agency (hereinafter as ‘CRA’). This optimization of the IPO by the Securities and Exchange Board of India (hereinafter as ‘SEBI’) has been seen as a market innovation to ensure the credibility of
Premium Credit rating Bond Collateralized debt obligation
Public Offering (IPO) is when a private company sells its first stock to the public. This is usually done by company’s who are smaller and or “younger” looking to raise capital in order to expand. It can however be done by larger private companies that want to become public. IPO’s can be a risky investment‚ as the investors do not know how the stock will do on its first day of trading‚ in addition‚ there are not much historical data either. In August 2010‚ Gevo Inc.‚ filed for IPO with the SEC‚ which
Premium Initial public offering Stock market Public company
Metals has take into consideration the IPO proposal of David Clark‚ president of Eskimo Pie Corporation‚ rather than selling the company to Nestle Foods (Case Study‚ 2001). This analysis will identify the current value of the company at a stand-alone value and explain why Nestle Food would want to buy this company and the synergies involved for their reasoning. We will also discuss who will benefit if Reynolds Metals were to sell to Nestle or were to create an IPO. Finally we will provide a recommendation
Premium Discounted cash flow Cash flow Weighted average cost of capital