Evaluate the under-pricing or over-pricing, Financial Management

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







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
Related Questions
Treatment of PER IFRS 3 Business combinations necessitate goodwill on gaining to be calculated at the date control is gained. The second gaining gives ROB a 75% holding and

Q ualification criteria We discussed how to prepare the bid documents. Let us now see what criteria should be considered to qualify a bidder. You will have to open bidding

Under what circumstances is a warrant’s value high?  Explain. A warrant’s value would be high while the stock prices, time to expiration, and/or expected stock price volatility a

Balance Sheet: The balance sheet measures the financial position of the business at a particular point in time.  It is also called Statement of Financial Position. The balan

Q. How cash flow problems arise? It is significant first to distinguish between profitability and cash availability. The key scheme relates to insolvency since even profitable

Which of these two methods is better: discounting the Equity Cash Flow or discounting the Free Cash Flow? The results we get by discounting the Equity Cash Flow and the Free Ca

Country analysis and political risk Country analysis could use tools for example PEST factors in order to strategically analyse countries. Political risk

What is Redeemable debt Company will have to re-pay the debt at redemption date or between the two redemption dates (i.e. 20X5/20X9, means debt can be redeemed any time betwe

The payment that the issuer makes to the bondholder can be in any currency. The contract at the time of bond issue between the issuer and the investor can specify

Explain what is meant by the incremental cash flows of a capital project. Incremental cash flows are defined by the change in total firm cash inflows and cash outflows which ca