...INITIAL PUBLIC OFFERINGS (IPOs) REGULATIONS & PROCESS Options for Raising Funds Fund Raising Options Debt Equity IPO FPO Hybrid From Banks & FIs Various forms of Convertibles In India Public issue of Bonds/Debentures Rights Issue Pref. Issue outside India ECB ADR/GDR FCCB & FCEB Why IPOs? For Funding Needs •Funding Capital Requirements for Organic Growth •Expansion through Projects •Diversification •Funding Global Requirements •Funding Joint Venture and Collaborations needs •Funding Infrastructure Requirements, Marketing Initiatives and Distribution Channels •Financing Working Capital Requirements •Funding General Corporate Purposes •Investing in businesses through other companies •Repaying debt to strengthen the Balance Sheet •Meeting Issue Expenses For Non-funding Needs •Enhancing Corporate Stature •Retention and incentive for Employees through stock options •Provide liquidity to the shareholders Related Regulations Companies Act, 1956 --Provisions Relating to Prospectus --Provisions on Minimum Subscription, Allotment, Return of Allotment --Power to SEBI under section 55 A relating to Issue & transfer of securities Securities Contract (Regulation) Act, 1956 Securities and Exchange Board of SCRR- Rule 19(2)(b) - prior to 4.6.2010 Rule 19 (2)(b) provides that a company can get listed with just 10 per cent holding with the public provided the minimum net offer to the public is Rs 100 crore (Rs 1 billion)...
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...| JetBlue Airways | | Valuation of an IPO Case Study | | JetBlue Airways | | Valuation of an IPO Case Study | 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri 2014 Ivan McClure, Imtiaz Saboor, Vanessa Lopes, Gilberta Pjetri TABLE OF CONTENTS * History * Advantages & Disadvantages of an IPO * IPO Process * Weighted Average Cost of Capital (WACC) * Similar Company Analysis * Discounted Cash Flow Analysis * Final Decision History David Neeleman, an experienced entrepreneur in airline startups, announced that JetBlue would bring “humanity back to air travel” on July 1999. He was convinced that his commitment and innovation would keep the planes full and moving despite the fact that 87 new-airline startups had failed in the last twenty years. An impressive new management team and growing group of investors shared Neeleman’s vision. JetBlue’s management team included David Barger, former vice president of Continental Airlines. Neeleman received strong support in funding from high-profile firms such as Weston Presidio Capital, Chase Capital Partners, and Quantum Industrial Partners, and quickly raised $130 million. Neeleman’s goal was to “fix everything that sucked about air travel”. His strategy was built on that goal as well providing the passengers with new aircraft, simple and low fares, leather seats, free Live TV at every seat, pre-assigned seating, and high quality customer service...
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...Cap Rate Homework Assignment – Due Monday, September 28 |841 E. 4th Street |217 Broadway |1 W 4th Street | |Office Building |Office Building |Office Building | |Sale Price: $240,000 |Sale Price: $298,000 |Sale Price: $3,220,000 | |Date: August 2009 |Date: Feb 2009 |Date: May 2009 | |Sqft: 3314 |Sqft: 3200 |Sqft: 23,000 | |Built: 1920 |Built: 1934 |Built: 1925 | |NOI: $22,800 |NOI: $31,200 |NOI: $289,800 | |0.04 acres |0.1791 acres |0.1377 acres | |.095 |.104 |.09 | You have researched a few recent sales transactions of similar buildings in South Bethlehem (see the table above)....
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...9/22/2011 MACC 424: WSJ Diary Project China Studies Foreign IPOs 09/21/2011 I. Summary China’s government is considering new regulations to govern a corporate structure, the so called VIE which is known as variable interest entity, that has enabled a wave of Chinese firms to list overseas by circumventing rules against foreign investment in sectors such as the Internet. Under this special structure, Chinese legal entities hold the sensitive permits and licenses required to do business in China while the offshore holding companies in which foreigners buy shares contract with those onshore entities, which are often controlled by the holding companies’ top executives, to get revenue from fees and royalties. Since the China’s domestic exchanges are dominated by state firms thus any move to clamp down on future use of the VIE structure could leave privately owned companies in many industries with limited options for going public especially the Internet industries. It turns out that Chinese officials is decided to set up extensive controls on the Internet, after social-networking sites and other web-based tools are common and essential in people’s normal life II. My Reaction As we all know, most Internet companies in China take VIE structure to make themselves successfully listed overseas, such as Sina, Baidu, Tencent and Alibaba. If VIE structure is illegal, it is devastating to the all the partners or any stakeholders in these overseas listing companies, as...
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...Case Study Analysis: CODEACADEMY’s Monetization Strategy 1. Venture capital firm Union Square’s Andy Weissman warns against pursuing monetization strategies too soon. Do you agree with this? When is the right time to pursue monetization strategies, and how do you know? I agree with Andy Weissman, that Codeacademy shouldn’t pursue monetizing strategies too soon. The right time to pursue monetization is after 1 to 1.5 years. This is because despite having a successful user-base and market credibility with corporate, government, academic and individual users in different countries, Codeacademy has been struggling to generate stable revenues. The company needs to further develop and enhance its core products and competencies, whether in the form of annual corporate contracts, user-generated fees, advertising, IPOs etc. before launching into monetization. This timeframe, will also enable it to strengthen its branding strategy to achieve the above goals and attract multiple sources of funding. 2. Is it time for Codeacademy to pursue monetization efforts? If so, which ones should they choose and why? No, it is not feasible for Codeacademy to pursue monetization efforts immediately. However, they should commence on this after 1 to 1.5 years. They should select a monetization effort that ensures sustainability, by pursuing an enterprise-model. This strategy should be chosen because: a. It is a good source of stable income, from established Fortune-500 corporations. b. It...
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...Case Study IT Business Dot Com Alibaba. Com Extracted from Alibaba.com Presentations SME : Small and Medium Sized Enterprises IPO : Initial Public Offering The business model of Alibaba is very simple. It is to help sellers meet buyers. More specifically, it provides an Internet based business‐to‐business (B2B) platform where sellers(suppliers / manufactures) can meet buyers (outsourcers / wholesalers) on a global scale. The company offers two platforms, one in Chinese for Chinese businesses, and another in English for the other international customers. Customers are both the sellers and the buyers, who are able to post “storefronts” to advertise their products or needs. Alibaba offers several services. By June of 2007, Alibaba had over 19.8 million registered users, with 16.6 within its Chinese market place. 219,098 of these 19.8 users where paying members. As stated by Alibaba, the workflow includes: 1. Suppliers and buyers post their listings, matching the inputs from the company’sstrategic perspective. 2. Listings are searched, contacts are made, and information is exchanged between thesuppliers and buyers. This will often include product specifications and capabilities. This corresponds to the information manipulation the company’s servers and softwareuse to generate the value for the customers. 3. Customers then negotiate with each other, which is the “outbound” part of theworkflow. 4. All of the communications for suppliers and buyers is ...
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...Case Study: Facebook 1) In my country of origin, Morocco, Facebook is used primarily by people from 15 to 35 years old. The social network played a big part in the outburst of social revolts referred to as “Arab Spring”, since it was one of the only mediums for the people to keep their freedom of speech in times of tyranny. But it also has a couple drawbacks, in my opinion, the major one being the lack of control of users over their own personal data. This can represent a big inconvenience in some situations such as applying for a job. Nowadays, with employers making sure to search deeper and deeper into their recruits’ past and present social networking activities, any mistake a person might have made, even a long time ago, could come back and haunt him for the rest of his life. I think that the social network, by promoting freedom of speech and allowing people to keep in touch with their loved ones, even though in today’s globalized world it’s easier than ever to be far from them, is a great tool for the people of a developing country like Morocco. However in years to come, the emphasis should be on the challenge that is personal data encryption and protection, as well as user awareness on theses issues. 2) Faced with the need to define their approach to global expansion, Facebook chose to remain loyal to its values, in order to keep their international credibility as well as to justify their extraordinary IPO ambitions. The company is looking for market with a...
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...Chapter 2 Related Literature and Studies This study sought to present related literatures and studies that are relevant to the study. It includes foreign and local literature, and foreign and local studies from journals, websites and books, online newspaper and online articles, similar studies such as thesis, and dissertations that have been previously conducted by other researchers, some studies that were analyzed by the researchers. These following literatures and studies will surely be very helpful for the researchers for the analysis of the study that will serve as foundation of overview that will be undertaken by reviewing articles from books, published materials and of course, the internet. Review of Related Literatures Local Literature Foreign Literature Review of Related Studies Local Studies Foreign Studies Theoretical Framework The theoretical framework shows the diagram about the input-process-output (IPO) of the existing or present and the proposing system. A theoretical framework guides the proponents to the research to the outline possible courses of action or to present a preferred approach to an idea or thought. The diagram will be use on showing and explaining the flow and outcome of both systems. Input Input Process Process Output Output The teacher manually uses chalks to writes on board and students still uses pencil and paper on every session. Same process used frequently. The teacher manually uses chalks to writes...
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...Chapter 1 The Problem and its Background Introduction According to Maraya (2013), excellent academic performance is an ultimate goal of study for every student because it provides the half way of success in the future. Students need to know how they can earn the achievement in academic performance. As being students, the perception on study habits is necessary. Therefore, the objectives of this study are to find out students’ perception on their study habits and to evaluate whether study habits of Grade 5 and Grade 6 students in SMA has positive relationship with their academic performance in Learning English. Measures of study behaviors, also called study skills, strategies, or techniques, can serve as diagnostic tools to help instructors identify students in need of additional help and can also provide a better awareness of a student’s strengths and weaknesses and, correspondingly, ways to optimize his or her learning. Study behaviors can be broadly defined as behaviors functioning to acquire, organize, synthesize, evaluate, remember, and use information (Crede & Kuncel, 2008; Gettinger & Seibert, 2002). Such behaviors include time management; goal setting; selecting what, how, and where to study; taking good notes; reading; and self-testing. Researchers have divided the many specific study behaviors into four main categories: repetition-based (e.g., flashcards), cognitive-based (e.g., studying with a friend), procedural (e.g., time management), and metacognitive...
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...Case Study Synopsis: Ruth’s Chris – The High Stakes of International Expansion Defining the Issues company completed a milestone completing a successful IPO that raised more than $154M USD in new equity capital in its 2005 annual report, the company committed to an accelerated development plan through company owned and franchised locations. current stores were seeing consistent incremental revenue growth, but accelerated development will require entry into the international market shareholders will expect to see share prices increase (i.e., to maximise profit) The Basic Issue company wants to increase revenue through expansion (“growth”) Analysing Case Data (Cause & Effect) barrier to international expansion may be RCR’s strict franchise criteria: liquid net worth of $1M USD, verifiable experience within the hospitality industry, desire and ability to develop multiple locations; $100K USD per restaurant franchise fee + 5% gross sales royalty fee + 2% gross sales fee. senior management committed to the market development model, but not all senior management committed to international expansion market selection criteria presents some potential barriers to international growth (insistence on US Beef) insufficient international market data (no data on how often people ate in restaurants, or their affinity toward US brands). some countries will not have an affinity for US brands. Generating Alternatives since franchising was successful in Canada...
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...ACCOUNTING THEORY AND PRACTICE PRE-REQUISITE : BKAF3073 FINANCIAL ACCOUNTING AND REPORTING IV |Lecturer |Group |Room |Ext. |e-mail | |DR. DHIAA SHAMKI |C & F |3.07 |3740 |dhiaashamki@uum.edu.my | 1.0 SYNOPSIS This course is an advanced level course focusing on financial accounting theory; and as such, it differs from other accounting courses learnt previously. It is designed to further enhance students’ understanding of the concepts and issues in accounting theory and practices. This course involves the study of the practical and theoretical issues involved in the development, implementation and changes in accounting theories and regulatory framework. As this course will be seminal-like, this course will provide students with some generic skills required in the accounting profession such as team working, interaction, leadership, follower-ship, critical and creative thinking skills, decision making skills, analytical skills, communication skills as well as professional demeanor. 2.0 OBJECTIVES Upon completion of this course, students are expected: 2.1 to understand the principles, concepts and issues in accounting theory, financial accounting theory and reporting practices, 2.2 to critically evaluate the development...
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... Research Title “EFFECTS OF STUDY HABITS ON THE ACADEMIC ACHIEVEMENT OF HIGHSCHOOL STUDENTS” A research proposal Presented to: Ms. Eliza Enriquez Researchers: Jay Mar M. Basco Kenton Van Fortu Adrian Cablao Chapter I A. Introduction Changes in behavior naturally occur in high school students. Nowadays, students spend their vacant time for doing their habits instead of advancing their studies. Some of this habits make them forgot to do their school responsibilities because of enjoyment that it caused to them. Playing computer games, watching their favorite television shows and hanging out with their friends are the common habits of high school students. Good study habits are the key to learning. Everyone cannot be brilliant but everyone can learn how to study. Effective study habits, even highly intelligent student failed due to inefficient work and lack of knowledge on how to study effectively. Important skills for study have to be learned and practiced. Moreover, students who put in more classrooms how and who work to a more regular program of study have a better academic performance. Study habits tend to be formed in the early grades and in the most instances, do not materially improve after elementary school. Some students often complain about mental inability or strain or lack of interest in studies. Other thinks they are not capable. Purpose of the study The purpose of this study is to provide awareness and better...
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...MTGS7601 Individual Organisation Problem Analysis MF Global Case Study Word count: 2442 Jinghua Chen 43775275 Table of Contents 1.0 introduction...............................................................................................................................................2 2.0 Background 2 3.0 problems statements................................................................................................................................2 4.0 PROBLEMS ANALYSIS..............................................................................................................................................3 5.0 ORGANISTION RESPONSE...............................................................................................................................8 6.0 RECOMMENDATIONS......................................................................................................................................9 7.0 CONCLUSION.................................................................................................................................................10 REFERENCE LIST..................................................................................................................................................11 APPENDICES.......................................................................................................................................................15 1.0. Introduction The purpose of this report...
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...UST Global, India: delivering software service solutions Balakrishnan Menon Balakrishnan Menon is a Professor in the DC School of Management and Technology, Idukki, India and Research Scholar in the School of Management Studies, Karpagam University, Coimbatore, India. 1. Introduction When the founder Chairman of US Technology Private Ltd (UST) Late Mr G. A Menon wanted to set up a software company in Trivandrum, the capital city of the communist party dominated state of Kerala in the year 1999, many people close to him warned that he was setting himself up for failure. The state of Kerala was, in those days, labeled as anti-investment and non-conducive to new entrepreneurial ventures, as it was dominated by a work force, controlled by militant trade unionism with a vested interest to keep their flocks together with age-old dogmas and philosophies. However, Mr Menon went ahead with his plan and set up the company in Trivandrum, as he was keen to do something for his home state, even when the top echelon in the Secretariat (head quarters of the state administration machinery) discouraged him. In subsequent years, UST became the largest software exporter from the state of Kerala, to USA and other countries. UST is a fully-owned subsidiary of California-based US Technology Resources LLC. Established on September 1, 1999 with barely 14 employees, the company was set up, as a 100 per cent Export Oriented Unit, to export software services and solutions, in Techno Park, Trivandrum...
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...S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II S T R A T E G Y – II www.ibscdc.org 1 Transformation Corporate Transformation Korean Air: Chairman/CEO Yang-Ho Cho’s Radical Transformation A series of fatal accidents, coupled with operational inefficiencies snowballed Korean Air into troubled times. Then, at the beginning of the 21st century, its CEO/ Chairman, Yang-Ho Cho undertook various transformation initiatives - for instance, improving service quality and safety standards, technology integration, upgrading pilot training, better business focus; putting in place a professional management team, improving corporate image through sponsorship marketing, etc. He gave a new corporate direction in the form of '10,10,10' goal. However, Korean Air is held up by a slew of challenges. Among which are inefficiencies of - Chaebol system of management, possible clash of its cargo business with its own shipping company, limited focus on the domestic market and growing competition from LCCs. How would Korean Air manage growth as a family-owned conglomerate? The case offers enriching scope for analysing a family business’s turnaround strategies, with all the legacy costs involved. Pedagogical Objectives • To discuss the (operational) dynamics of Korean Chaebols - their influence/ effects on the country’s industrial sector and the economy as a whole • To analyse how family-owned businesses manage the transition phase - from a supplier-driven...
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