Initial Public Offerings

Colette Southam, Craig Dunbar, Jeff Lindquist

Research output: Contribution to specialist publicationArticleEducation

Abstract

This note provides an overview of Initial Public Offerings (IPOs) and addresses the methods used to value companies undergoing an IPO. It begins with a brief introduction to IPOs and the rationale behind “going public,” followed by an analysis of IPOs from the investor’s perspective. Next, the IPO process is outlined and explained, including the underwriter choice, selling procedure, pricing and activities in the aftermarket. Lastly, the note examines the valuation methodology used in the pricing stage of IPOs. This includes the discounted cash flow method, the use of market multiples of comparable firms, as well as other situational considerations when determining the initial price per share range and final offering price.
Original languageEnglish
Number of pages13
No.9B14N005
Specialist publicationIvey Publishing [Case Studies]
PublisherIvey Business School
Publication statusPublished - 31 May 2013

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Initial public offerings
Pricing
Rationale
Going public
Methodology
Discounted cash flow
Investors
Underwriters
Aftermarket

Cite this

Southam, C., Dunbar, C., & Lindquist, J. (2013). Initial Public Offerings. Ivey Publishing [Case Studies], (9B14N005).
Southam, Colette ; Dunbar, Craig ; Lindquist, Jeff. / Initial Public Offerings. In: Ivey Publishing [Case Studies]. 2013 ; No. 9B14N005.
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Southam, C, Dunbar, C & Lindquist, J 2013, 'Initial Public Offerings' Ivey Publishing [Case Studies], no. 9B14N005.

Initial Public Offerings. / Southam, Colette; Dunbar, Craig; Lindquist, Jeff.

In: Ivey Publishing [Case Studies], No. 9B14N005, 31.05.2013.

Research output: Contribution to specialist publicationArticleEducation

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Southam C, Dunbar C, Lindquist J. Initial Public Offerings. Ivey Publishing [Case Studies]. 2013 May 31;(9B14N005).