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Case of Oranized Exchange

Select a company that has gone public in the last few years on an organized exchange anywhere in the world.
Answer the following questions in essay form:

1. Introduction of company. What business is the company in? When was the company established? When did the company go public? Why did the company decide to go public?

2. What exchange lists the stock? Why did the company decide to list on that exchange. What is stock symbol?

3. Who was the investment banker? Why did the company choose that investment banker? Was IPO done on an underwritten or best efforts basis? How much was paid to the investment banker?

4. How many shares were issued? What portion of the company did insiders retain?

5. What was the offer price per share? How was the offer price decided? How much money was raised?

6. Has stock price changed since IPO? What was the price at end of first day? Estimate the amount of money left on the table? What is current price?

7. What did the company use the money for?

8. Anything else that you think is interesting about the IPO

Solution Preview

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For the analysis of a company that has gone public in last few years, Facebook is selected. It is an online social networking service provider by connecting the people with each other throughout the world. The company launched IPO on May 18, 2012 and earlier it filed for IPO on February 1, 2012 (Sloan, 2012). The SEC requirements were the major reason for Facebook to go public. At the same time, need of capital for business expansion was also a reason that Facebook went public as it helped Facebook to campaign to big investors for its capital requirements and to be more powerful (Ulick, 2013).

Stock Exchange
NASDAQ stock exchange lists the stock of Facebook. The firm decided to list its stock on this exchange as it has a good position as the favoured exchange for the technology companies in US. At the same time, other bigger technologies companies such as Apple, Microsoft, Intel and Google are also listed on NASDAQ, which is the major reason why company decided to list on this stock exchange (Womack, Mehta & Kisling, 2012). The stock symbol for Facebook is 'FB' on NASDAQ stock exchange.

Investment Banker
Morgan Stanley was the investment banker ...

Solution Summary

A case of organized exchange is provided. The exchange lists of stocks are provided.

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