Student paper FI516 IPO Paper Vonage, IPO Success or Failure Executive Summary * Vonage Holdings Corporation was incorporated in the year 2000 and is based out of Holmdel, New Jersey. Vonage provides broadband communication both in the U.S and internationally within Canada, and the United Kingdom. Their market share continues to shrink due to competition and loss of customer base. * Vonage profitability is practically non-existent. Since their inception Vonage’s expenses have outdone
Words: 1747 - Pages: 7
underpricing and overpricing an IPO relative to the underwriting company as well as to the company issuing the IPO. If Scott and Stringfellow were to underprice the IPO, they could easily be criticized for not obtaining the maximum possible value for Hop-In Food. This could lead to a loss of underwriting business not only from Hop-In Food, but from other corporations as well. Scott and Stringfellow could lose a good reputation and solid brand if they underprice Hop-In’s IPO, and there could be a possible
Words: 728 - Pages: 3
1. How does Facebook make money? What are the value drivers of its business? What is its comparative advantage relative to other social networking companies? At the time of the IPO, Facebook possessed two revenue streams: advertising ($3.145B in 2011) and payments ($0.555B in 2011). The advertising business delivered ads to Facebooks users. Users uploaded an incredible wealth of information to Facebook, including their authentic identities, interests, and social connections, allowing advertisers
Words: 2160 - Pages: 9
original members of Gene One are challenged with organizing the company and preparing it for an initial public offering (IPO) on Wall Street. The IPO requires the company to make several changes to the structure of the company’s executive board, marketing strategy, and product invention. Leadership at Gene One must identify weaknesses in management concerning the IPO, and the stress associated with going public. Management is challenged with accomplishing one of the following: 1.
Words: 1999 - Pages: 8
PUBLIC ISSUE IPO Initial Public Offer• When an unlisted company makes either a fresh issue of securities or offers its existing securities for sale or both for the first time to the public, it is called an IPO. This paves way for listing and trading of the issuer‟s securities in the Stock Exchanges. Eligibility for IPO • a) Net tangible assets of at least Rs. 3 crore in each of the preceding three full years • b) Distributable profits for at least three out of the immediately
Words: 1777 - Pages: 8
Hastings, to re-evaluate NetFlix’s business model in preparation of its upcoming initial public offering (IPO). NASDAQ Composite Index has fallen 25% and many other internet companies have been forced to withdraw their IPOs. McCarthy needs to project future cash flows and determine if any changes to NetFlix’s business model need to be implemented. Analysts recommend the company proceed with its IPO once it can generate 12 months of positive cash flows. RECOMMENDATIONS: We recommend evaluating the
Words: 1755 - Pages: 8
“FINANCE” Course “PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION, AGAIN” case analysis Brief summary of the case with the emphasis on managerial problems that Prada faces. Prada currently requires a significant amount of capital both to re-finance debt that is maturing in the next six to twelve months and to finance its intended growth into the Asian (especially Chinese) markets. Since financial markets are aware of Prada’s pressing need to raise capital, it is important for
Words: 771 - Pages: 4
aims at 40% growth in 36 months, thus, it needs an IPO to respond to the demand and meet their targets. The venture capital will allow Gene One to develop new technologies, increase their exposure, and strengthen the brand. The CEO, Don Ruiz, received board approval and is poised to implement his plan with the help of his senior executives. Similarly, other companies that have reached the growth of Gene One have used the prospects of an IPO to develop newer products, advance their technologies
Words: 868 - Pages: 4
dot-com era and information technology boom of the late 1990's and contributed in making the Internet and World Wide Web known to common people. On August 9, 1995, Netscape went through the initial public offering (IPO) process. Dramatically, on August 8, the day before the IPO, Netscape's lead IPO underwriters recommended to the Netscape board to increase the initial offering price to $28 per share from $14 per share, a 100% increase. At this new offering price, the Netscape's value would suddenly climb
Words: 2096 - Pages: 9
rather than an IPO may be the preferred exit opportunity. * Private markets on the other hand, may benefit here since going public is a burden. * ETFs, Mutual Funds, and other retail investment vehicles now invest into these private transactions. This gives the retail investor a way to invest in private markets. This will make going public a sub optimal exit strategy. Why bother to do an IPO? * If a company can stay private and find money and liquidity why do an IPO? IPOs have the following
Words: 874 - Pages: 4
