What firm did you choose and what industry is it in

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Reference no: EM133770143

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We are looking at the cost of capital and raising capital for corporations.

In the US News article from December 28, 2023, a quick review of the 2023 IPO market is presented, along with thoughts for 2024. High inflation and market "earnings recession" negatively impacted the market for IPOs in 2023, but 2024 may see a return to more "normal" activity levels. A second article from Bloomberg highlights 2023 as a year of high investor losses in SPACs, or "blank check companies". These are special purpose acquisition companies or SPACS. There are a number of YouTube videos out there that will help explain SPACs, but I found this really short (<4 minute) video that gives a good overview

The third article is from Reuters com, which discusses the recent corporate bond issues and their outlook for early 2024.

In the lecture notes I focus on capital either from a firm going public for the first time (IPO) or selling more additional stock (secondary offering) or through debt offerings (selling bonds or taking out large loans). In the case of start-up firms, capital sources also include bank loans and from venture capital firms. VCs, or private equity firms are a major source of financing for non-public firms.

For this discussion, I'd like you to research a firm of your choice that has recently (last 2 years) raised major capital from public sources. This can be an IPO, SPAC, venture capital funding, or major issuance of new debt.

A. What firm did you choose and what industry is it in? Is that a risky industry?

B. Why/when did the firm begin its operations?

C. What type of funding did the firm raise and why did it choose that particular source? Yes, you may need to speculate here. Whatever you come up with, be sure to have some sort of support for your opinion.

D. What is interesting about the company or its capital raising efforts?

E. How has the post-funding performance been? I don't mean this to be a major analysis, just a short overview of the situation. This is where you might go to Yahoo Finance and search for a particular firm. If you go to "historic data", you will see the daily stock prices as far back as you want to go.

Hints:

In the lecture notes I have the top 10 IPOs so far from 2023. Any of these firms are fair game in this discussion. In addition, below is a link to Yahoo.com which lists the 25 largest VC backed companies for 2023. The bond articles gives several examples of new issues and quick Google searches should yield more results. Virtually any firm that has raised a significant amount of new money in public markets in the past year or two where you can find some info is something to discuss.

Reference no: EM133770143

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