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

Claim for refund, Claim for Refund - A refund isn't automatically mailed if...

Claim for Refund - A refund isn't automatically mailed if one is due. A taxpayer whether individual orbusiness, should file a request on a form. It should also be filed within the

Foreign exchange exposure, Using an appropriate 'factor model', assess (a) ...

Using an appropriate 'factor model', assess (a) the performance of the management in creating value for shareholders and (b) the extent of the foreign exchange exposure of a FTSE10

Registered and unregistered bonds, On the basis of transferability, d...

On the basis of transferability, debentures can be classified as registered and unregistered debentures. Unregistered debentures (or bearer debentures) are freely

What is a marginal cost of capital schedule (mcc), What is a marginal cost ...

What is a marginal cost of capital schedule (MCC)?  Is the schedule always a horizontal line?  Explain. The marginal cost of capital schedule is a graphic representation of the

Fin 2110, 1. Which of the following statements concerning the cash flow pro...

1. Which of the following statements concerning the cash flow production cycle is true? a) The profits reported in a given time period equal the cash flows generated. b) A company’

OPERATING CYCLE, DISSCUSS THE APPLICABILITY OF AN OPERATING CYCLE IN A VEGE...

DISSCUSS THE APPLICABILITY OF AN OPERATING CYCLE IN A VEGETABLE GROWING BUSINESS IN UGANDA?

Strong form level of efficiency, Strong form level of Efficiency This l...

Strong form level of Efficiency This level states that price reflects all the available public and private information (past, present and future information). If the hypothesis

Financial planning assignment, School of Business BUACC1521 Personal Financ...

School of Business BUACC1521 Personal Financial Planning ASSIGNMENT 1. General information As detailed in the Course Description, the assignment constitutes 30% of the tota

What are the options available for growth, What are the options available f...

What are the options available for growth Joint venture   A joint venture is when a separate company is formed, in which every member holds an equity st

Active portfolio strategy, Active Portfolio Strategy: An active portfo...

Active Portfolio Strategy: An active portfolio strategy is tracked by most aggressive investors and investment professionals who strive to make superior returns, after adjustm

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