industry, * Developed modeling software for oil refining and chemical manufacturing systems. * In 1994, to finance further R&D, to acquire externally developed technologies, and to allow early investors….. AspenTech went public in a $31 million initial public offering * RESEARCH AND DEVELOPMENT COST * >> High funding >> Intense competitive in the market >> high switching costs associated with committing to a particular simulation program. >> primarily on salaries
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the deal. Management thought a successful offering involved not only raising short-term capital, but also maintaining access to future capital and providing positive returns to employees and others purchasing shares. JetBlue’s aggressive growth plans advocated maintaining access to capital markets, so keeping the price lower seemed wise to ensure success. Furthermore, the low price appeared to be a good idea considering the risks of taking a new airline public just 6 months
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Private Equity vs Public Equity * Private Equity and Public equity ownership represent very different packages of costs and benefits. * In the current environment raising money private makes sense because valuations appear to be quite high. * The incentive to invest privately is that early stage investors are allowed to cash out of their investments. This forces investors to need a liquidity event. * A strategic acquisition rather than an IPO may be the preferred exit opportunity
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Amazon Supply Chain Alibaba’s (BABA) is a Global e-commerce platform that was founded by Jack Ma in 1999. Alibaba’s original customer base was rural China but now BABA’s is expanding globally. Alibaba’s has now received the highest Initial Public Offering (IPO) the United States has ever seen. One of the positives of Alibaba’s is that it is already bigger than Amazon. Alibaba’s is the world’s fastest growing e-commerce market. Another positive is that the company has rapid growth and
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buy-outs of market leaders with strong cash flow. The competition for objects that are for sale has amplified, which has resulted in price increases of the objects. The higher prices offered by the PE companies also affects the number of initial public offerings (IPO) on the Dhaka and Chittagong Stock Exchanges. One reason for the small number of current IPOs is that the objects simply have been valued higher by PE companies than they would do in an IPO. PURPOSE: The purpose with this thesis is
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Initial Public Offerings Name: FIN 370/Finance for Business Date: Initial Public Offerings Private companies transform into public companies to expand and attract investors. To do this they begin selling common stock to institutional investors who then sell the stock to the general public through a securities exchange. According to Mayo, 2012, “If this sale is the first sale of common stock, it is referred to as an initial public offering (IPO).” In this essay, we will attempt to describe
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Announcement Background The United States is one of the world’s most attractive places for a company to go public, especially for those mainland Chinese companies with funding needs. U.S. market gives those companies a chance to raise huge amounts of capital after their unsuccessful attempts to get bank borrowings in China. And compared with the traditional initial public offering process in the Chinese stock market, listing via reverse merger in the U.S. market seems to be much less expensive
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University of Maryland, R. H. Smith Business School Case Report Facebook INC: The Initial Public Offering Group Members Ao Zhou 114214195 Zehua Huang 114352699 Emily Buczkowski 112344252 Rui Cao 114368911 Julian Gooch 112364922 University of Maryland, R. H. Smith Business School Summary Facebook is an emerging internet-based company which has astonishing growth in the past decade. Its substantial user base, subsequently massive database and pioneer brand image provide Facebook
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the ‘lead underwriter’. So, the lead underwriters ‘win’ by gaining from Underwriting spread. It is the difference between the amount paid by underwriting group in a new issue of securities and the price at which securities are offered for sale to public. It comprises of manager’s fee and Underwriting fee. To illustrate this, lets look at the case of eToy’s IPO in 1999 where Goldman Sachs was the key issuing bank. This example illustrates that by valuing the company little more over the actual
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the Company Zynga is a social gaming company. Many of their games are seen on social media networks such as Facebook, or Google+. On August 11, 2011, Zynga restated their first quarter revenue to reflect an accounting error in their initial IPO (initial public offering) registration. Their second quarter revenue report was increased by 3% over what was reported in first quarter. The error was due to a previous policy estimate (Primack, August, 2011). Accounting Principles Involved In the first quarter
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