Ipo Paper

In: Business and Management

Submitted By arscott78
Words 1600
Pages 7
Andre R. Scott (D01495990) Advanced Managerial Finance – Sept 2013 - FI516 IPO Paper – Week 5 – 10/06/2013 Teacher: Miriam Benard COMPANY AND INDUSTRY
Company
I choose this company for two reasons; the world of information technology is huge and growing steadily. Google, Yahoo, and YouTube are hugely popular sites, and youku is a site that is similar to YouTube and delivers great possibilities for the Asian community. Youku.com, Inc. went public on December 8, 2010. This company is in the business of delivering video content over the internet. Their business model consists primarily of deriving advertising revenue as the result of viewer activity over their system. They license content and provide it for viewer use. There is no viewer fee for the service. Youku bills itself as the “leading internet television company in China.” Their mission is to become the primary source of video content for the Chinese population across any Internet-enabled device. The overall offering is somewhat like what we know as You Tube. According to iResearch, Youku has appx. 40% of the marketshare of total user time spent viewing video content online in China. Its nearest competitors have appx. 23% and 14% respectively.
According to the company’s registration filing, their assessment of their strengths and opportunities is as follows:
Our Competitive Strengths
We believe that the following strengths contribute to our success and differentiate us from our competitors: |  | | leading Internet television company in China with strong brand recognition; |

|  | | large and comprehensive video content library tailored to Chinese users; |

|  | | substantial investments in infrastructure, know-how and products and services to deliver a superior user experience; |

|  | | differentiated sales proposition attracting mainstream brand…...

Similar Documents

Understanding Ipos and Ipo Scams

...Understanding IPOs and IPO Scams You don’t have to spend too much time around the stock market to discover that there’s something fishy about many stocks’ initial public offerings, (IPOs).  The standing joke is that IPO really stands for “It’s Probably Overpriced”.  While that may or may not be true in any given case, there are a large number of pitfalls awaiting the would-be IPO trader or investor.  It’s a case of caveat emptor, and in order to be suitably wary you need to understand how an IPO works and how it can be manipulated to your disadvantage. An IPO is the means by which a private company is sold to the public.  The owners of the company will approach a major investment bank (sometimes referred to as a “bulge bracket” bank) to underwrite the IPO.  That bank will then create a syndicate of banks and brokerages to run the IPO.  Stock shares are then sold by the company to the syndicate and by the syndicate to the syndicate members’ customers.  The deal can be structured a couple of different ways, but in general the syndicate guarantees they will find buyers for the shares, accepting financial risk if they fail.  The syndicate sells the shares of the soon-to-be public company at a higher price then they acquired them.  This gap is set as part of the underwriting contract, and has historically been about 7%.  Once the shares have been “allocated” to the syndicate’s customers, the stock can begin trading on an exchange.  The bulge bracket bank which lead the IPO......

Words: 2268 - Pages: 10

Valuing Ipos

...Journal of Financial Economics 53 (1999) 409 }437 Valuing IPOs Moonchul Kim , Jay R. Ritter * Department of Accounting, KyungHee University, C1 Hoegie-Dong, Dongdaemun-Ku, Seoul 130-701, South Korea Department of Finance, School of Business Administration, University of Florida, Gainesville, FL 32611-7168, USA Received 3 June 1997; received in revised form 18 August 1998 Abstract The use of accounting information in conjunction with comparable "rm multiples is widely recommended for valuing initial public o!erings (IPOs). We "nd that the price}earnings (P/E), market-to-book, and price-to-sales multiples of comparable "rms have only modest predictive ability without further adjustments. This is largely due to the wide variation of these ratios for young "rms within an industry. P/E multiples using forecasted earnings result in much more accurate valuations than multiples using trailing 1999 Elsevier Science S.A. All rights reserved. earnings. JEL classixcation: G24 Keywords: Initial public o!erings; Valuation; Comparable "rms * Corresponding author. Tel.: #1-352-846-2837; fax: #1-352-392-0301. E-mail addresses: kimc@nms.kyunghee.ac.kr (M. Kim), jritter@dale.cba.u#.edu (J.R. Ritter) This paper is based on Moonchul Kim's University of Illinois Ph.D. dissertation. We would like to thank seminar participants at Boston, Emory, Georgetown, Humboldt (Berlin), and Vanderbilt Universities, the Universities of Miami and Texas, the Stockholm School of Economics, the Chinese......

Words: 13092 - Pages: 53

Ipo Paper

...James Holliday April 3, 2011 FI516 IPO Paper Identify the company and its industry. Pandora Media, Inc. is an internet streaming radio service used by more than 80 million listeners. Pandora, which has a catalog of 800,000 songs from more than 80,000 artists, has roughly half the market for Internet radio in 2010, according to a study published in November by Ando Media. Though the service is wildly popular, it has yet to make a profit. The Internet radio station generates playlists based on a user's favorite artist or song. As part of the company's Music Genome Project, songs are analyzed according to musical features -- including details of instrumentation, harmony, lyrics, melody, rhythm, and vocals. Users enter the name of a song, and Pandora creates a playlist of songs with similar characteristics. Pandora's service, free to its more than 80 million registered users and available only in the US, is supported by local and national advertising. Pandora chief strategy officer Tim Westergren founded the company in 2000 and it filed for an IPO in 2011. Discuss important financial and other facts about the company from its SEC filings. In its papers filed with the Securities and Exchange Commission, Pandora reported a $16.8-million loss on $55.2 million in revenue for its fiscal year ended Jan. 31, 2010. From Feb. 1, 2010 through Oct. 31, Pandora narrowed its losses to $328,000 on $90.1 million in revenue. Because Pandora is largely a free service, only 9% of its...

Words: 925 - Pages: 4

Ipo Valuation

...|IPO Valuation Procedure in Bangladesh | | | | | | | Internship Report IPO Valuation Procedure in Bangladesh Prepared for: Professor Shakil Huda Chairman IBA Career Center Institute of Business Administration University of Dhaka Supervised by: MsSyedaMahrufa Bashar Lecturer Institute of Business Administration University of Dhaka Prepared by: Asif Rezwan Roll: 64, MBA 44D and Management Trainee Officer, LankaBangla Investments Limited Institute of Business Administration University of Dhaka June 24, 2012 June 24, 2012 MS. Kanij Fahmida Assistant Professor Department of Accounting Faculty of Business Studies Bangladesh University of Business & Technology(BUBT) Dear Sir, Subject: Letter of Transmittal for Internship Report I, Ibna Shina Shibly, am submitting my internship report on “IPO Valuation Procedure in Bangladesh”. The internship period and the subsequent effort in writing this...

Words: 7525 - Pages: 31

Ipo Paper: Dunkin Brands, Inc.

...Running Header: IPO Assignment: Dunkin’ Brands Group, Inc. Dunkin’ Brands Group, Inc. FI516- Advanced Financial Management  August 12, 2012 Introduction The company chosen for this assignment is Dunkin' Brands Group, Inc. (NASDAQ: DNKN). With approximately 16,800 points of distribution in nearly sixty countries worldwide, Dunkin' Brands Group, Inc. is one of the world's leading franchisors of quick service restaurants (QSR) serving hot and cold coffee and baked goods, as well as hard-serve ice cream. Its franchised business model comprises 9,760 Dunkin’ Donuts restaurants and 6,433 Baskin-Robbins restaurants. Dunkin’ Brand’s competitors include: 7-Eleven, Burger King, Cold Stone Creamery, Dairy Queen, McDonald’s, Quick Trip, Starbucks, Subway, Tim Horton’s, WaWa and Wendy’s, among others (Google Finance, 2012). Additionally, Dunkin’ Brands competes with other QSRs, specialty restaurants and other retail concepts for prime restaurant locations and qualified franchisees. As of December 31, 2011, it had 10,083 Dunkin’ Donuts restaurants in 36 states, the District of Columbia, and 31 other countries; and 6,711 Baskin-Robbins restaurants in 44 states, the District of Columbia, and 48 other countries. The company also leases restaurant properties. With approximately 120 years of combined history Dunkin’ Brands Group, Inc. is headquartered in Canton, Massachusetts (Yahoo Finance, 2012). According......

Words: 2067 - Pages: 9

Ipo Paper - Chipotle Mexican Grill

...RUNNING HEAD: IPO Paper IPO Paper - Chipotle Mexican Grill Advanced Managerial Finance– FI_516 – Fall_B Keller Graduate School of Management of DeVry University February 6, 2012 IPO Paper – Chipotle Mexican Grill Chipotle Mexican Grill, Inc. (Chipotle) is a chain of restaurants in the United States, Canada, and today around the world specializing in burritos and tacos, founded by Steve Ells in 1993 and based in Denver, Colorado. The name derives from "chipotle", the Mexican Spanish name for a smoked, dried jalapeño chili pepper. The restaurant is known for its large burritos, assembly line production and use of natural ingredients. The company has released a mission statement called “Food with Integrity”, which highlights its efforts in using organic ingredients, and serves more naturally raised meat than any other restaurant. Chipotle is one of the first chains of fast casual dining establishments. From 1998 to 2006, McDonald's Corporation owned a majority interest in Chipotle, from which it fully divested in 2006. The company currently has more than 1100 locations, with restaurants in 41 states, Washington, D.C., Toronto, Ontario, and London, England. Its net income in 2010 was $178 million, and it has a staff of over 26,500 employees. Overall revenue for Chipotle in 2004 was $470.7 million, a 130% increase from 2002 and a 49% increase from 2003, this was driven by new store openings and increased average sales. Average store sales grew from $1,056,000......

Words: 1166 - Pages: 5

Ipo Paper

...Case Study 1 Springfield Express is a luxury passenger carrier in Texas. All seats are first class, and the following data are available: Number of seats per passenger train car 90 Average load factor (percentage of seats filled) 70% Average full passenger fare $ 160 Average variable cost per passenger $ 70 Fixed operating cost per month $3,150,000 a. What is the break-even point in passengers and revenues per month? VC per passenger=$70 Full fare per passenger=$160 CM = $ 160- $ 70=$ 90 per passenger CM ratio = $ 90/$160 =56.25% Fixed cost = 3,150,000 160x = 70x + 3,150,000 90x = 3,150,000 x= 35,000 passengers Break even revenue = 35,000 *160 = $5,600,000 b. What is the break-even point in number of passenger train cars per month? Load factor70% = 90*0.7 = 63 Breakeven per car = 35,000 / 63 = 556 passengers c. If Springfield Express raises its average passenger fare to $ 190, it is estimated that the average load factor will decrease to 60 percent. What will be the monthly break-even point in number of passenger cars? Sale fare = $190 190x = 70x + 3,150,000 X = 26,250 Load factor 60% = 90*0.6 = 54 Breakeven cars = 26,250 / 54 = 486 ...

Words: 751 - Pages: 4

Ipo Paper

...James Holliday April 3, 2011 FI516 IPO Paper Identify the company and its industry. Pandora Media, Inc. is an internet streaming radio service used by more than 80 million listeners. Pandora, which has a catalog of 800,000 songs from more than 80,000 artists, has roughly half the market for Internet radio in 2010, according to a study published in November by Ando Media. Though the service is wildly popular, it has yet to make a profit. The Internet radio station generates playlists based on a user's favorite artist or song. As part of the company's Music Genome Project, songs are analyzed according to musical features -- including details of instrumentation, harmony, lyrics, melody, rhythm, and vocals. Users enter the name of a song, and Pandora creates a playlist of songs with similar characteristics. Pandora's service, free to its more than 80 million registered users and available only in the US, is supported by local and national advertising. Pandora chief strategy officer Tim Westergren founded the company in 2000 and it filed for an IPO in 2011. Discuss important financial and other facts about the company from its SEC filings. In its papers filed with the Securities and Exchange Commission, Pandora reported a $16.8-million loss on $55.2 million in revenue for its fiscal year ended Jan. 31, 2010. From Feb. 1, 2010 through Oct. 31, Pandora narrowed its losses to $328,000 on $90.1 million in revenue. Because Pandora is largely a free service, only 9% of its...

Words: 925 - Pages: 4

At&T Wireless Ipo Paper

...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 to AT&T Wireless SEC filing, On July 12, 2013, AT&T Inc. (“AT&T”) entered into an Agreement and Plan of Merger with Leap Wireless International, Inc. AT&T will acquire Leap in a transaction in which Leap stockholders would receive $15.00 in cash for each outstanding share of Leap’s common stock, plus one non-transferable contingent value right (“CVR”) per share (together, the “Merger Consideration”). AT&T announced on July 23, 2013 that second-quarter 2013 net income attributable to AT&T totaled $3.8 billion, or $0.71 per diluted share, compared to net income attributable to AT&T of $3.9 billion, or $0.66 per diluted share, in the second quarter of 2012. For its second-quarter 2013 revenues were $32.1 billion, up $500 million, or 1.6 percent, from the second-quarter 2012. The increase in revenues reflected higher wireless data and equipment revenues and increased wire line data revenues partially offset by declines in wire line voice and wireless voice and text revenues,......

Words: 1697 - Pages: 7

Ipo Pricing

...IPO pricing and allocation: a survey of the views of institutional investors * Tim Jenkinson Said Business School, Oxford University and CEPR Howard Jones Said Business School, Oxford University Abstract Despite the central importance of investors to all IPO theories, relatively little is known about their role in practice. In this paper we survey institutional investors about how they assess IPOs, what information they provide to the investment banking syndicate, and the factors they believe influence allocations. Although the theoretical IPO literature has tended to focus on information revelation, the survey raises doubts as to the extent of incremental information production and whether bookrunners are, in practice, able to infer investors’ valuations from their bids. We find that investor characteristics, in particular broking relationships with the bookrunner, are perceived to be the most important factors influencing allocations, which supports the view that IPO allocations are part of implicit quid pro quo deals with investment banks. JEL classification: G23, G24 Keywords : IPO, institutional investors, survey * Corresponding author: Tim Jenkinson, Saïd Business School, 1 Park End Street, Oxford OX1 1HP, UK. e: tim.jenkinson@sbs.ox.ac.uk; t: +44 1865 288916; f: +44 1865 288805. We are very grateful to the Investment Management Association, in particular Tina Johnson, Jane Lowe, and Gordon Midgely, and the Alternative Investment Management Association,......

Words: 11460 - Pages: 46

Ipo Paper

...Initial Public Offering: Gevo, Inc. FIN516: Advanced Managerial Finance Janice Jensen February 9, 2014 An Initial Public Offering (IPO) is when a private company sells its first stock to the public. This is usually done by company’s who are smaller and or “younger” looking to raise capital in order to expand. It can however be done by larger private companies that want to become public. IPO’s can be a risky investment, as the investors do not know how the stock will do on its first day of trading, in addition, there are not much historical data either. In August 2010, Gevo Inc., filed for IPO with the SEC, which went public in January 2011. Gevo Incorporated was founded in 2005 and known as Mechanotech, Inc. and changed its name in 2006 to Gevo Incorporated. Gevo Incorporated “is a leading renewable chemicals and advanced biofuels company.” (Gevo, 2011) They are looking for alternatives to petroleum-based products, by using “a combination of synthetic biology and chemistry”. (Gevo, 2011) They were founded in 2005 and known as Mechanotech, Inc. and changed its name in 2006 to Gevo Inc. Gevo filed with the SEC for their IPO in August 2010. In their filing with the SEC, Gevo notes that investing with their company provides high degree of risk. They go on to note that those that are interested in investing with them need to consider all the factors. One of the biggest factors is their financial statements have shown losses since their inception and notable in 2007 - $7...

Words: 1368 - Pages: 6

Ipo Term Paper

...and the capital market; Now, therefore, in exercise of the power conferred by section 2CC of the Securities and Exchange Ordinance, 1969 (XVII of 1969), and in consultation with the Government, the Commission hereby imposes the following further conditions to the consent to the issue of capital already accorded by it, or deemed to have been accorded by it, or to be accorded by it in future, namely:(a) Minimum paid up capital (existing + proposed) requirement for initial public offering (IPO) shall be Tk. 30 (Taka thirty) crore; (b) Minimum size of IPO shall be Tk. 12 (Taka twelve) crore, but that shall not be less than 10% (ten percent) of the total paid up capital (existing + proposed); (c) In case of IPO under Book Building Method as per the Securities and Exchange Commission (Public Issue) Rules, 2006, by the Thrust Sectors (namely, Power and Gas Infrastructure) companies, the requirements for minimum period of commercial operation and profitability shall be 1 (one) year; (d) In case of IPO under Book Building Method, the Eligible Institutional Investors (EII) shall not be allowed to participate in the bidding unless they participate and quote price in the Road Show for setting the indicative price of concerned issue. The EII participating in the Road Show and quote price must also participate in the bidding. The issuer and issue manager will jointly submit the attendance sheet and the quoted price by the EII along with the draft prospectus to the Commission; and (e)......

Words: 3840 - Pages: 16

Ipo Paper

...MANNING & NAPIER, INC. IPO Paper Manning & Napier, IPO Business Description Manning and Napier, Inc. is an independent investment management firm which provides a broad range of investment solutions through separately managed accounts, mutual funds and ‘ collective investment trust funds. This company also offers equity and fixed income portfolios as well as a range of blended asset portfolios, such as life cycle funds, that use a mix of stocks and bonds. Manning and Napier Advisors, LLC (“Manning & Napier) was founded in 1970 and is located in Fairport NY. This company currently employs 450 as of 9/30/2011. According to the SEC S1 registration filing this company’s key executive officers and directors are listed below: Table 1.1 Name William Manning Age 74 Title Chairman Patrick Cunningham 55 Chief Executive Officer and Director Jeffrey S. Coons 48 President Beth H. Galusha 50 Interim Chief Financial Officer Charles H. Stamey 56 Executive Vice President Richard B. Yates 46 Chief Legal Officer and Secretary B. Reuben Auspitz 64 Vice-Chairman SEC Filings On 7/1/2011, Manning & Napier filed its registration statement S-1 for a registration fee of $29, 025. This registration was a preliminary prospectus and was not complete at the time of submission. There we 5 revisions to the original registration statement. This registration included selected combined consolidated statements of income data for the years ended December 31, 2008, 2009 and...

Words: 1127 - Pages: 5

Fi516 - Ipo Paper

...LaToya Roberts-Hill FI516 – Advanced Managerial Finance IPO Paper Dollar General Corporation Dollar General Corporation was founded in 1939 by Cal Turner in Scottsville, Kentucky. The initial concept of Dollar General was that no item in the store would cost more than one dollar. Dollar General Stores are normally located in small shopping plazas or strip malls in local neighborhoods. In recent years, Dollar General has started constructing more stand-alone stores, mostly in areas that are not served by other general merchandise retailers. Today, Dollar General Headquarters is located in Goodlettsville, TN. Dollar General offers both name brand and generic products, including off-brand goods and close- outs of name-brand items to its consumers. Dollar General has also begun to offer a greater selection of grocery items including frozen foods similar to that of a grocery store. The Dollar General Stores that carry the grocery and frozen products are similar to Wal-Mart Supercenter, thought they are much smaller, operate under the name of Dollar General Market. Dollar General serves communities that are too small for larger retail chains such as Wal-Mart. Its competitors are national chains such as Family Dollar, Dollar Tree, and Fred’s in the southeast. By 1957, Dollar General had 29 stores and their annual sale for these stores was around $5 million. Dollar General has also been connected with motorsports like NASCAR. It is now sponsoring Turner......

Words: 779 - Pages: 4

Blackstone Ipo Paper

...Blackstone Group Asset Management Group IPO 2007 Finance 1516 Asset Management Business  Asset management involves the management of investments by third-party managers for their investors. Asset managers use various strategies that can be divided into these broad categories: traditional equity, fixed income fund strategies and alternative investment strategies (Blackstone Group LP, 2007).  The more traditional asset managers manage and trade portfolios of equity, fixed income and or derivative securities. Assets may be invested in investment companies that are registered under the 1940 Act or through separate account managers on their behalf. The traditional fund manager is normally compensated with fees that are a percentage of assets under their management. Alternative asset managers have predefined risk parameters and investment guidelines and use a variety of strategies to achieve the required returns for their clients (Blackstone Group, 2007). This industry has experienced significant growth in worldwide assets under management in the past ten years, partially due to aging populations in both developed and emerging markets around the world that have increased the pools of savings and particularly pension assets. Blackstone has delivered superior returns with a lower correlation to the broader market than traditional asset management strategies. They have helped their clients diversify their investment portfolios by......

Words: 2711 - Pages: 11