Tom.com--2000 Case Solution
On February 18, 2000, month old Internet startup, Tom.com, started its IPO and would be ready for trading by March 1 on Hong Kong's Enterprise Market that oversees the growth. The online company, whose major shareholder, the Mr. Li Ka Shing and Hutchinson Whampoa, ambitiously intended to capture the craze that Hong Kong's investors had for new Internet stocks. The enormous demand for Tom.com shares increased Internet frenzy in Hong Kong to new levels reminiscent of the red chip fever of 1997. Many of the retail investors had no idea what the business did but were betting on the IPO being a winner mostly because of Mr. Li's punch with China. In this case, the pupil is requested to serve as an investment advisor to a retail investor considering subscribing to Tom.com's IPO. The student will provide an analysis of the dangers and opportunities of investing in Tom.com and make a recommendation on whether the customer should purchase Tom.com's shares at the offer price.
This is just an excerpt. This case is about FINANCE & ACCOUNTING
PUBLICATION DATE: January 01, 2000
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