CHAPTER 19 Initial Public Offerings, Investment Banking, and Financial Restructuring. Initial Public Offerings Investment Banking and Regulation The Maturity Structure of Debt Refunding Operations The Risk Structure of Debt. What agencies regulate securities markets?.
Initial Public Offerings, Investment Banking, and Financial Restructuring
Differentiate between a private boundaries.
placement and a public offering.
Would companies going public use a negotiated deal or a competitive bid?
Would the sale be on an competitive bid?
underwritten or best efforts basis?
Describe how an IPO would be priced. competitive bid?
Number of shares
Gross proceeds = 7 x $10 million
= $70 million
Underwriting fee = 7% x $70 million
= $4.9 million
Net proceeds = $70 - $4.9
= $65.1 million
What is a rights offering? proceeds if spread is 7%?
What is meant by going private? proceeds if spread is 7%?
Advantages of Going Private proceeds if spread is 7%?
Disadvantages of Going Private proceeds if spread is 7%?