Evaluate the under-pricing or over-pricing, Financial Management

Assignment Help:

Assume that you work with a large financial consulting firm. You are one of the junior financial consultants there specializing in IPO issue. A team of foreign investors has recently contacted your firm for consultation as they are interested to invest in the share ownership of companies listed in Bursa Malaysia. They are only interested to invest in companies which are listed at least 3 years ago. As the initial stage of their investment strategy, the foreign investors would like to know more about the companies start from the day they went IPO. You are one of the consultants assigned by your boss to complete the task. Your boss has asked you to prepare a report on a company from Bursa Malaysia. Your report must be impartial and unbiased as all the reports compiled from all the consultants involved in the task will be used as reference by the foreign investors to decide on which stocks to invest and which to avoid. As the foreign investors are not very familiar with the IPO market as well as the general stock market condition in Malaysia, your duty is therefore to address the following issues pertaining to the company in your report:  

(a)   Discuss your company's core businesses, its major competitors and two main possible sources of competitive advantage (or lack of competitive advantage) for the company. Do you think your company is a leader or a follower in the industry? Why?

(b)   Discuss what are the main reasons for your company to go public? What do you could possibly be some of the concerns for your company to go public? Why?

(c)    Evaluate the extent of the under-pricing (or over-pricing) for your company's IPO. What are some of the possible reasons that could justify the under-pricing (or over-pricing) of the company's IPO? How much money is left on the table?

(d)   Discuss the long run performance of your company's IPO. Is it impressive? Why?

(e)   Evaluate the past 5-year capital structure of your company. Do you think your company is currently using too much of debt or equity? Recommend an appropriate strategy of capital structure for the next 5-year for your company.


Related Discussions:- Evaluate the under-pricing or over-pricing

Acquisition strategy, T he acquisition strategy The most important str...

T he acquisition strategy The most important strategic consideration is the size of the acquisition. The completion of smaller series should be considered in the beginning tha

Establish budgets and allocate funds, 1. Allocate resources to different de...

1. Allocate resources to different departments by taking information from previous financial data. 2. What would be the estimated cost of new allotted resources to be included i

Indirect-cost pools, 1. Increasing the number of indirect-cost pools is gua...

1. Increasing the number of indirect-cost pools is guaranteed to sizably increase the accuracy of product or service costs.do you agree? Support your anser using examples 2. The

Project, Starbucks future cash flows

Starbucks future cash flows

How to measure the firm risk of a capital budgeting project, Explain how to...

Explain how to measure the firm risk of a capital budgeting project. The firm risk of a capital budgeting project measures the force of adding a new project to the existing pro

How are the hibor, Q. How are the HIBOR, HSI and HSI futures related? T...

Q. How are the HIBOR, HSI and HSI futures related? The HIBOR and HSI are contrariwise related. So futures on HIBOR and HSI are as well inversely related. Display

Determine the calculations for the cash flows, The calculations for the cas...

The calculations for the cash flows Actual amount of cash paid or received during the period needs to be established. This can get quite  tricky  as  there  would be  accruals

Explain about invoice discounting, Q. Explain about Invoice discounting? ...

Q. Explain about Invoice discounting? Invoice discounting is a technique which is able to be used to raise finance against receivables. Invoice discounting works as follows:

Marshall-edgeworth method, Marshall-Edgeworth Method Marshall-Edgeworth...

Marshall-Edgeworth Method Marshall-Edgeworth method uses both the current year as well as the base year prices and quantities. Marshall-Edgeworth Index can be computed using th

Financial Analysis of Carrefour & Tesco Supermarkets, comparative analysis ...

comparative analysis on these two food retailing giants

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd