What is interesting about the company

Reference no: EM133633366

As of October 2023, the market for at least some of the investment banking firms was down (see WSJ article on Morgan Stanley earnings). According to the article, the Fed's raising of interest rates brought an end to the surge of deals seen during the pandemic. This article also mentions "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.

There is a second article to read which describes the apparent overpricing of Birkenstock's recent IPO. This is in contrast to the underpricing issues that we have been looking at this week. There are issues with both underpricing (leaving money on the table) and with overpricing (lower demand for the issue).

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, or VC funding.

What industry is it in? Is that a risky industry?

Why/when did the firm begin its operations?

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.

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

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 https://finance.yahoo.com/?fr=sycsrp_catchall 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.

Reference no: EM133633366

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