When competing, Zillow Group Inc. went public in July 2011; it was only a matter of time before Trulia, Inc. (Trulia), followed suit. In late 2011, Trulia's board of directors intended on going public when it hired Sean Aggarwal as its CFO in order to see the company through the initial public offering (IPO) procedure. In late May 2012, he's contemplating when to go public, in the wake of Facebook’s unsatisfactory IPO before in the month, which had stalled the IPO market.
Trulia would qualify as an EGC, and so was eligible to avail itself of the reduced disclosure and public on ramp provisions of the law. This case analyzes an IPO that follows in close proximity to the passage of the JOBS Act. Aggarwal must decide what provisions of the new law to embrace with few precedents to go by.
The case contains a straightforward valuation exercise of Trulia's preliminary price range for teachers wishing to cover this subject. Additionally, it covers two other controversial issues about IPOs: the high costs of going public and the disappearance of small IPOs in America from 2001 to 2011, as motivation for the JOBS Act. A short review is given of each topic and the controversy surrounding it to allow instructors flexibility in exposing students to these dilemmas.
This case was written for Darden's second-year MBA elective focusing on funding arrangements, but would be useful in undergraduate or graduate classes covering capital raising, investment banking, or corporate finance.
Learning Objective: 1. Expose students to valuation methodology used in establishing stock price for an IPO. 2. 3. Acquire an understanding of the JOBS Act affects processes and the associated costs for comparatively small-scale companies going public.
When competing, Zillow Group Inc. went public in July 2011; it was only a matter of time before Trulia, Inc. (Trulia), followed suit. In late 2011, Trulia's board of directors intended on going public when it hired Sean Aggarwal as its CFO in order to see the company through the initial public offering (IPO) procedure. In late May 2012, he's contemplating when to go public, in the wake of Facebook’s unsatisfactory IPO before in the month, which had stalled the IPO market.
Trulia would qualify as an EGC, and so was eligible to avail itself of the reduced disclosure and public on ramp provisions of the law. This case analyzes an IPO that follows in close proximity to the passage of the JOBS Act. Aggarwal must decide what provisions of the new law to embrace with few precedents to go by.
The case contains a straightforward valuation exercise of Trulia's preliminary price range for teachers wishing to cover this subject. Additionally, it covers two other controversial issues about IPOs: the high costs of going public and the disappearance of small IPOs in America from 2001 to 2011, as motivation for the JOBS Act. A short review is given of each topic and the controversy surrounding it to allow instructors flexibility in exposing students to these dilemmas.
This case was written for Darden's second-year MBA elective focusing on funding arrangements, but would be useful in undergraduate or graduate classes covering capital raising, investment banking, or corporate finance.
Learning Objective: 1. Expose students to valuation methodology used in establishing stock price for an IPO. 2. 3. Acquire an understanding of the JOBS Act affects processes and the associated costs for comparatively small-scale companies going public.
Publication Date: 09/28/2015
This is just an excerpt. This case is about Finance
Related Case Solutions & Analyses:
HTC Corporation
Response to SEC’s Proposed Rule
Southern Company
Clarks at a Crossroads, Video
China Aviation Oil (C): Oil on Troubled Waters
Ethical Dilemma: Lee & Ching Ltd.
Fiscal Austerity, Healthcare Cost Containment And The Management Of Drug Supply: The Case Of Italy
Four Generations Of The Owens Family (B)
GE Healthcare Life Support Solutions (B): A Vision-Led Integration
GlaxoSmithKline And Aids Drugs In South Africa (B): The Settlement
