This note provides a summary of Initial Public Offerings (IPOs) and depicts the procedures utilized to value companies getting an IPO. It initiates with a basic introduction to IPOs as well as the rationale behind going public, followed by an evaluation of IPOs from the investor's perspective.
Next, the IPO process is summarized and clarified, including the underwriter pick, selling pricing procedure and activities in the aftermarket. Finally, the note analyzes the valuation methodology used in the pricing period of IPOs. This includes other situational considerations when establishing the initial price per share closing offering price and variety, in addition to the discounted cash flow method, the usage of market multiples of similar companies.
PUBLICATION DATE: May 13, 2013 PRODUCT #: W14160-HCB-ENG
This is just an excerpt. This case is about FINANCE & ACCOUNTING