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Pick a company that had an initial public offering in the past 5-10 years. Identify the IPO term and answer the following questions...

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I found the following in example online and believe that it will significantly enhance my understanding of the IPO process, any assistance that can be offered is very much appreciated.

Pick a company that had an initial public offering in the past 5-10 years. Identify the IPO term and answer the following:

1. Did this company need to go public in order to meet its financial needs?
2. As an investor, would you have been willing to purchase the company's stock at the offering price? Why or why not?

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"On the face of it since the price has zoomed to $72.62 it would seem that the investment at $14 was worth its offering. However, this is only the first of its offering, let the other Linux IPOs hit the market and..."

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1. Did this company need to go public in order to meet its financial needs?
No, the company need not have gone public in order to meet its financial needs. Its financial needs could easily have been met with short-term funds, which it could have got from banks and after its needs were over, it could return its funds to the bank. IPO is a long-term commitment and it is doubtful if Red Hat will be able to meet its commitments
No doubt, Red Hat is the leader in the Linux market, which is growing at break-neck speed. However, there are many competitors clawing after it, such as VA Linux, Caldera and LinuxCare. These companies will raise lots of money from their IPOs and put even more pressure on Red Hat. With a $7 billion market capitaliztion, Red Hat looks risky. It is doubtful if the company needs that much money.
As for Microsoft (MSFT) , they always seem to find a way to prevail, such as against the threats of the Netscape browser and Java. Microsoft loves a fight and should definitely be a big concern for Linux companies. This finanicing through an IPO could send the dividends plummeting or simply at zero.
The Red Hat initial offer price of $14. seems on the higher side..
About three weeks ago, on ...

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