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
What agencies regulate
Differentiate between a private
placement and a public offering.
Why would a company consider
Would companies going public use a negotiated deal or a competitive bid?
Would the sale be on an
underwritten or best efforts basis?
Describe how an IPO would be priced.
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?
What is meant by going private?
Advantages of Going Private
Disadvantages of Going Private
How do companies manage the maturity structure of their debt?
Under what conditions would a firm exercise a bond call provision?