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Determination of an offering price for an IPO (initial publi

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If you were an investment banker, how would you determine the offering price of an IPO?

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The SEC procedures for the process of issuing new public stock offerings (IPOs) is highly regulated, complicated and date sensitive. For a definition of many of the terms involved in the process, refer to the following site:

The determination of the issue price is more of a marketing job. The underwriting firm(s) will float the issue by either agreeing to sell the stock on behalf of the company or by actually buying the stock for a negotiated price (usually discounted to the expected market price) from the company to resell to the public.

After the filing is approved by the SEC, ...

Solution Summary

In a 440 word solution, the procedure for pricing an IPO are detailed together with commentary about underpricing, regulations and marketing pressures

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Strategic Corporate Finance: Type of IPO for Avaya

Hi, can you assist me with a background paper on what type of IPO Avaya should use. I need to decide between a traditional IPO or an online auction. I need to conduct an analysis and based on the findings recommend an IPO to Avaya's executives. Please add 2 references that I can revert back to for understanding and clarification.

Some issues to consider in answering the above include:

i) The type of investors Avaya is likely to attract.

ii) The lessons learned from Google and Morningstar from their auction IPO's.

iii) Advantages of each type of IPO.

iv) Costs and risks of each type of IPO.

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