Week 8 Case Study – JetBlue Man Hon Chan 22002960 Introduction An initial public offering (IPO) refers to the initial stage of shares offering to the public market for subscriptions by a company to raise capital for the purpose of expansion. It is considered as a big issue for companies as an IPO does not necessary guarantee the success of a company as it is merely a tool of raising capital while its costs of issuance and consecutive monitoring costs (due to diluted shareholdings of the
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and debt securities which are typically issued through Investment Banks. Debt securities: • Commercial paper • Medium-term notes • Corporate bonds Equity securities: • Initial public offering (IPOs) • Seasoned equity offering (SEOs) 2) What is underwriting and what are the two broad types of underwriting? Underwriting refers to the process by which investment bankers raise investment capital on behalf of the issuer. They
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instead of competitive pricing IV. Employees - Less likely to dismiss unproductive employees - All employees of same stock > loss of competitiveness 4 Corporate Strategy and Business Development Question 2 The fundamental value of NECE shares Valuation based on Multiples: - First calculate the EBITDA per segment by the proportion of the sales - We used the average of the multiple for the MCU segment - We used the lowest multiple for the Commumication segment (this segment was not doing well)
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Rosario Acero S.A. Teaching Note Synopsis and Objectives In March 1997‚ the board’s chair of this small steel mill was pondering how to finance the growth of his firm: either with an initial public offering (IPO) of equity or through a private placement of eight-year senior notes with warrants. The task for the student is to sort out the comparative advantages and disadvantages of each alternative—including valuing the possible securities—and then recommend a course of action. These are the
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asymmetry costs could lead to IPO underpricing (Rock‚ 1986; Welch‚ 1989). Investors have to gather information‚ and this is a costly process‚ so they will only accept lower prices (Draho‚ 2004). This is especially the case for an IPO that targets many investors (Chemmanur and fulghieri‚ 1999). Maug (1999) calls this
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Picks: How to spot a good IPO and a bad IPO in ... 11 May 2012 I can’t help but to mention one classic example of Vastalux Energy Bhd. In 2008‚ Vastalux stocks were undersubscribed and since its listing the share price hasn’t climbed any higher than its IPO price and is currently facing ... http://malaysiastockpicks.blogspot.com/ 1 11 May 2012 How to spot a good IPO and a bad IPO in Malaysia Here is a guide to spot a good Initial Public Offering (IPO) and a bad IPO in Malaysia. Whether you
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Ventures (“TCV”) and 2) CellTech Communications (“CellTech”)‚ a vendor of wireless technology which had recently gone IPO. 2. EXECUTIVE SUMMARY Metapath has made good progress in developing its business since its inception – generating $6.4m revenue in the September quarter of 1997 with representation of three large customers. However‚ with the ambition to win a good chance of IPO within the next two years‚ more capital needed to be raised to gain traction in customer acquisition and smooth out
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approximately)". Another such estimate by Delhi-based PRIME Database suggests that if the Government follows up on its promise of bringing down its equity stake in listed CPSEs to 66%‚ it can mobilise Rs. 11040 crore going by the current market valuations. | 2. | Apart from generating a one-time sale amount‚ a lot of these stake sales would also result in annual revenues for the government‚ as has been shown in the past. | 3. | The government can focus more on core activities such as infrastructure
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they valued them lesser than other Venture Capitalists as they were not convinced of their ability to generate $500‚000 in revenues in the first year of operations. One thing that both the owners of the firm knew was that even though the initial valuation of both the VCs was not very different‚ they would need to be careful in analyzing the term
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The Risk and Return of Venture Capital John H. Cochrane1 Graduate School of Business‚ University of Chicago March 19‚ 2004 School of Business‚ University of Chicago‚ 1101 E. 58th St. Chicago IL 60637‚ 773 702 3059‚ john.cochrane@gsb.uchicago.edu. I am grateful to Susan Woodward‚ who suggested the idea of a selection-bias correction for venture capital returns‚ and who also made many useful comments and suggestions. I gratefully acknowledge the contribution of Shawn Blosser‚ who assembled the
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