Assume that you work with a large financial consulting firm. You are one of the junior financial consultants there specializing in IPO issue. A team of foreign investors has recently contacted your firm for consultation as they are interested to invest in the share ownership of companies listed in Bursa Malaysia. They are only interested to invest in companies which are listed at least 3 years ago. As the initial stage of their investment strategy, the foreign investors would like to know more about the companies start from the day they went IPO. You are one of the consultants assigned by your boss to complete the task. Your boss has asked you to prepare a report on a company from Bursa Malaysia. Your report must be impartial and unbiased as all the reports compiled from all the consultants involved in the task will be used as reference by the foreign investors to decide on which stocks to invest and which to avoid. As the foreign investors are not very familiar with the IPO market as well as the general stock market condition in Malaysia, your duty is therefore to address the following issues pertaining to the company in your report:  

(a)   Discuss your company's core businesses, its major competitors and two main possible sources of competitive advantage (or lack of competitive advantage) for the company. Do you think your company is a leader or a follower in the industry? Why?

(b)   Discuss what are the main reasons for your company to go public? What do you could possibly be some of the concerns for your company to go public? Why?

(c)    Evaluate the extent of the under-pricing (or over-pricing) for your company's IPO. What are some of the possible reasons that could justify the under-pricing (or over-pricing) of the company's IPO? How much money is left on the table?

(d)   Discuss the long run performance of your company's IPO. Is it impressive? Why?

(e)   Evaluate the past 5-year capital structure of your company. Do you think your company is currently using too much of debt or equity? Recommend an appropriate strategy of capital structure for the next 5-year for your company.

Posted Date: 2/18/2013 8:28:02 AM | Location : United States

Ask an Expert

Related Discussions:- Evaluate the under-pricing or over-pricing, Assignment Help, Ask Question on Evaluate the under-pricing or over-pricing, Get Answer, Expert's Help, Evaluate the under-pricing or over-pricing Discussions

Write discussion on Evaluate the under-pricing or over-pricing
Your posts are moderated

Write your message here..

Related Questions

Annual Inventory Costs., Harley Davidson purchases components from three su... Harley Davidson purchases components from three suppliers. Components purchased from Supplier A are priced at $ 5 each and used at the rate of 240,000 units per year. Components pu

Explain the risk-return relationship, Explain the risk-return relationship.... Explain the risk-return relationship. The relationship among risk and required rate of return is known as the risk-return relationship.  It is a positive relationship for the r

Evaluation of bids, E v aluation of  bids and determination of the lowes... E v aluation of  bids and determination of the lowest  evaluated responsive and qualified bidder You learnt how to receive and open bids in the previous sub section. Here you

Cash flow matching, Cash flow matching strategy is used to build a ... Cash flow matching strategy is used to build a bond portfolio wherein the cash flows of the bond portfolio exactly match a stream of liabilities. The most s

Cross-sector analysis, Cross-Sector Analysis: The growth of a country d... Cross-Sector Analysis: The growth of a country depends upon how fast a country can adapt to deregulation and internationalization. Deregulation and internationalization put com

Tax consideration affect cost of debt and cost of equity, How do tax consid... How do tax considerations affect the cost of debt and the cost of equity? As interest on debt is tax deductible to the issuing firm, as much higher the tax rate the lower the aft

Evaluate net present value of machine, Kenneth Su Gold Corp (KSGC) is consi... Kenneth Su Gold Corp (KSGC) is considering the purchase of a new piece of machinery. The new machinery would cost $80,000. You are given the following facts: The new machine

FDD , fimnancial accounting system fimnancial accounting system

Discuss the importance of dividend decisions, 1.   Discuss the various tech... 1.   Discuss the various techniques of inventory management for efficient working capital management. 2.   Discuss the importance of dividend decisions. What is MM theory of div

The value of the quick ratio, Dev's Spa has cash of $50, accounts receivabl... Dev's Spa has cash of $50, accounts receivable of $60, accounts payable of $200, inventory of $150 and accured expenses of $100. What will be the value of the quick ratio?