FRINK Linked Data Fragments server

Matches in SemOpenAlex for { <https://semopenalex.org/work/W5109341> ?p ?o ?g. }

• W5109341 startingPage "51" @default.
• W5109341 abstract "A look at the intricate art of taking a company public. It's show time. After months of preparation, your company's initial public offering (IPO) will start trading this morning. You spent yesterday afternoon anxiously tracking the market. The investment bankers canvassed their institutional brokers to assess interest in your stock. The company finance and accounting staff have spent countless hours preparing for the day. The final decision: The company will sell 2 million shares at $20 each, for a total offering of $40 million. The investment bankers say demand for your IPO looks strong, and they expect your stock to open with a pop. That prediction proves true--the shares open at $23 and the price moves steadily higher throughout the trading day, finally closing at $25. Although the stock's strong first-day performance is gratifying, you can't shake the feeling that you might have mispriced the IPO. The calculations run through your mind: Each $1 increase in the offering price would have generated $2 million more for the company. The thought nags you--did you sell too cheaply? When an IPO quickly moves to a significantly higher price during its first day on the market, it's natural to wonder if the investment bankers--and the issuing company's officers--didn't misprice the deal. Although the market for IPOs has cooled recently, some offerings still post impressive first-day gains. In mid-June, for example, 6 million shares of GOTO.com came to market at $15 and closed at $22.375, after trading as high as $28.50. Not too long ago, Internet and technology IPOs routinely doubled in value on their first day. That kind of volatility makes it inevitable to second-guess. The MarketWatch.com offering exemplifies the incredible demand that has existed for these issues. The company, an online financial news service, went public January 15, 1999, with an offering price of $17. It closed the day at $97.50, an increase of 474%. In another instance, theglobe.com went up 606%, from $9 to $63.50 on its first day, in November 1998. These enormous price surges raise questions about whether traditional valuation methods remain valid. Not surprisingly, however, investment bankers and CFOs who have taken their companies public recently dispute the notion that IPO pricing rules have changed. WHAT'S IN A NUMBER? Investment bankers say the valuation process is as much an art as a science. The scientific part of the pricing equation is based on numbers: an issuer's historical and projected financial results, as well as valuations for comparable companies. The art is in the investment banker's assessment of market conditions and investors' demand for the new issue. Pricing an IPO is always a function of the valuation, says Charles J. Kaplan, president of Equity Analytics. That's what you have to determine first. Kaplan, whose company advises privately held firms wishing to go public, points to a range of valuation multiples used to estimate a company's market value. Let's assume a food distributor or a food processing company wants to go public. We look at income before interest and dividends and put a multiple on that. If it is a relatively slow-growth industry, the multiple will be lower; if it's a fast-growing company, we'll use a higher multiple. The multiple probably won't go higher than 10 or lower than 2 or 3. Estimating a company's value begins well in advance of the IPO date. Businesses planning to go public typically interview several investment banking firms before selecting one to underwrite the offering. The investment bankers, in turn, investigate the company to determine if they want to handle the deal. They perform a detailed review of the company's finances, the quality of its management team and the company's position in its major markets. The investment bankers also consider comparables, which are publicly traded companies in the same industry as the IPO candidate. …" @default.
• W5109341 created "2016-06-24" @default.
• W5109341 creator A5019595817 @default.
• W5109341 date "1999-09-01" @default.
• W5109341 modified "2023-09-25" @default.
• W5109341 title "Pricing IPOs: Science or Science Fiction?" @default.
• W5109341 hasPublicationYear "1999" @default.
• W5109341 type Work @default.
• W5109341 sameAs 5109341 @default.
• W5109341 citedByCount "11" @default.
• W5109341 countsByYear W51093412017 @default.
• W5109341 countsByYear W51093412019 @default.
• W5109341 crossrefType "journal-article" @default.
• W5109341 hasAuthorship W5109341A5019595817 @default.
• W5109341 hasConcept C10138342 @default.
• W5109341 hasConcept C116168712 @default.
• W5109341 hasConcept C121332964 @default.
• W5109341 hasConcept C12559387 @default.
• W5109341 hasConcept C127413603 @default.
• W5109341 hasConcept C1276947 @default.
• W5109341 hasConcept C144133560 @default.
• W5109341 hasConcept C151730666 @default.
• W5109341 hasConcept C15241564 @default.
• W5109341 hasConcept C162324750 @default.
• W5109341 hasConcept C204036174 @default.
• W5109341 hasConcept C2777840570 @default.
• W5109341 hasConcept C2779343474 @default.
• W5109341 hasConcept C35138590 @default.
• W5109341 hasConcept C78519656 @default.
• W5109341 hasConcept C86803240 @default.
• W5109341 hasConceptScore W5109341C10138342 @default.
• W5109341 hasConceptScore W5109341C116168712 @default.
• W5109341 hasConceptScore W5109341C121332964 @default.
• W5109341 hasConceptScore W5109341C12559387 @default.
• W5109341 hasConceptScore W5109341C127413603 @default.
• W5109341 hasConceptScore W5109341C1276947 @default.
• W5109341 hasConceptScore W5109341C144133560 @default.
• W5109341 hasConceptScore W5109341C151730666 @default.
• W5109341 hasConceptScore W5109341C15241564 @default.
• W5109341 hasConceptScore W5109341C162324750 @default.
• W5109341 hasConceptScore W5109341C204036174 @default.
• W5109341 hasConceptScore W5109341C2777840570 @default.
• W5109341 hasConceptScore W5109341C2779343474 @default.
• W5109341 hasConceptScore W5109341C35138590 @default.
• W5109341 hasConceptScore W5109341C78519656 @default.
• W5109341 hasConceptScore W5109341C86803240 @default.
• W5109341 hasIssue "3" @default.
• W5109341 hasLocation W51093411 @default.
• W5109341 hasOpenAccess W5109341 @default.
• W5109341 hasPrimaryLocation W51093411 @default.
• W5109341 hasRelatedWork W1570452048 @default.
• W5109341 hasRelatedWork W1969632991 @default.
• W5109341 hasRelatedWork W2024452638 @default.
• W5109341 hasRelatedWork W2037393175 @default.
• W5109341 hasRelatedWork W2067294622 @default.
• W5109341 hasRelatedWork W2092259714 @default.
• W5109341 hasRelatedWork W2108818539 @default.
• W5109341 hasRelatedWork W2124092784 @default.
• W5109341 hasRelatedWork W212738580 @default.
• W5109341 hasRelatedWork W2148402268 @default.
• W5109341 hasRelatedWork W222861331 @default.
• W5109341 hasRelatedWork W2315740057 @default.
• W5109341 hasRelatedWork W3121981292 @default.
• W5109341 hasRelatedWork W3122367063 @default.
• W5109341 hasRelatedWork W3123014936 @default.
• W5109341 hasRelatedWork W3123557008 @default.
• W5109341 hasRelatedWork W3125291056 @default.
• W5109341 hasRelatedWork W320274462 @default.
• W5109341 hasRelatedWork W39867951 @default.
• W5109341 hasRelatedWork W814548504 @default.
• W5109341 hasVolume "188" @default.
• W5109341 isParatext "false" @default.
• W5109341 isRetracted "false" @default.
• W5109341 magId "5109341" @default.
• W5109341 workType "article" @default.