variables and IPO pricing. Results show that managerial ownership is positively related to both offer price and market price premium, which is consistent with a high level of managerial ownership reducing agency costs leading to a closer alignment of interests between managers and shareholders. High blockholder ownership is positively related to offer price premium but not market price premium which implies that underwriters, but not investors, perceive that the quality of the IPO is associated with
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Popular IPOs and Behavioural Finance 1 a) The IPO of Facebook Executive Summary This report examines and evaluates any observable behavioural finance phenomena during the recent Facebook Initial Public Offering. It starts by looking into Facebook’s background and what led up to the decision of turning the company public. It gives a brief explanation on the reasoning behind the decision and outlines the company’s main aims and focuses. It then gets into a few behavioural finance theories which
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he over $ 6-billion e-Commerce market in India will see IPOs gaining traction, preferably in the US, as well as see several consolidation moves in the next 2-3 years, experts said. Private Equity (PE) and Venture Capital (VC) funds turned towards the Indian market around 2008-09 after the sub-prime crisis hit the US and the debt problems in Europe. The PE and VC funds usually have investment commitments in the range of 6-10 years, after which they have to return the amount with assured benefits to
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AT&T Wireless IPO Paper AT&T Wireless is a provider of telecommunications services in the United States and worldwide. Services offered include wireless communications, local exchange services and long-distance services. AT&T operates in four segments: Wireless, Wire line, Advertising Solutions and Other. Its Wireless subsidiaries provide both wireless voice and data communications services across the United States, and through roaming agreements, in a substantial number of foreign countries According
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The impact of IPO’s in Indian economy 1) An Introduction to Indian economy. 2) IPO 3) How IPO’s contribute to business development 4) How development in business contribute to Indian economy 5) Reliance IPO’s 6) History and future scope for IPO’s 7) Failure of facebook IPO (1) The economy of India is the eleventh largest in the world by nominal GDP and the third largest by purchasing power parity (PPP) The country is one of the G-20 major economies and a member of BRICS. On a per capita
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significant importance to me. I would also like to thank my family for supporting me and motivating me not only throughout my postgraduate but also undergraduate degree. Contents: 1. Introduction 1 2.1 Background to the IPOs……….………...............................................................1 2.2 Problem Discussion………….……...…………………….………………….....4 2.3 Contribution of the study……………………………………….……...………..5 2. Literature Review 6 2.1 Lockup Agreements……………………………………………………………
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Executive Summary Hertz group had initiated an IPO in July 2006 when Carlyle group, together with Clayton, Dubilier &Rice, and Merril Lynch Global Private equity , three prominent firms had filed to take the firm public. However this action has come just seven months after the three had combined to purchase Hertz from Ford Motor Company for Approx. $15 million. Berg, MD of Vandelay Capital Management debated whether to invest in this IPO.The LBO sponsors had borrowed an additional $1 billion on
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JetBlue Airways IPO Valuation Summary In July 1999, David Neeleman announced his plan to launch a new airline that would bring “ humanity back to air travel.” Despite the fact the airline industry had 87 new-airline failures in U.S. over the past 20 years. Neeleman’s plan convinced a group of investors and quickly raised $130 million from venture-capital community. This is the way JetBlue Airways established. With its strong capital base, JetBlue acquired a fleet of new Airbus A320 aircraft
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1. How does the strategic repositioning of the company and the use of the IPO as an exit for minority shareholders affect the attractiveness of the IPO? The strategic repositioning of the company was to gradually shift away and exist from customer care which TRX generated more than 50% in 2000, and Davis’s long term strategy was to focus on the higher margin sectors, such as data transaction and integrations. By shifting away from customer care, of course would reduce operational cost and
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problem in control of management and is expensive. There are Free Cash Flow techniques and relative valuation techniques that we can use to value Jetblue’s share, however we are going to use the Free Cash Flow technique for this case as this is an IPO and the company had no history whatsoever that we can rely on except by using its similar competitor statistics and assumptions to value Jetblue. In conclusion, we have calculated that using Free Cash Flow technique, the share price is $57 and therefore
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