ANALYSIS OF IPO'S & RETURNS

AT 160ft MARCH, THE DUTCH EAST INDIA WHAT IS AN IPO ? AT 160ft MARCH, THE DUTCH EAST INDIA COMPANY WAS THE FIRST TO HAVE AN IPO . ALSO, AMSTERDAM STOCK EXCHANGE WAS THE FIRST EVER FUCTIONING STOCK EXCHANGE.

An IPO is also referred to as "going public." WHAT IS AN IPO ? An initial public offering, or IPO, is the very first sale of stock issued by a company to the public. Prior to an IPO the company is considered private, with a relatively small number of shareholders made up primarily of early investors (such as the founders, their families and friends) and professional investors (such as venture capitalists or angel investors). The public, on the other hand, consists of everybody else – any individual or institutional investor who wasn’t involved in the early days of the company and who is interested in buying shares of the company. An IPO is also referred to as "going public."

Uftderwriters are your best frieftd wheft goiftg Public!

Facebook (FB) in 2012 raising $16.01 billion WHY GO PUBLIC ? Going public raises a great deal of money for the company in order for it to grow and expand. Private companies have many options to raise capital – such as borrowing, finding additional private investors, or by being acquired by another company. But, by far, the IPO option raises the largest sums of money for the company and its early investors. Some of the largest IPO’s to date are: Alibaba Group (BABA) in 2014 raising $25 billion American Insurance Group (AIG) in 2006 raising $20.5 billion VISA (V) in 2008 raising $19.7 billion General Motors (GM) in 2010 raising $18.15 billion Facebook (FB) in 2012 raising $16.01 billion

The company files its prospectus with the SEC and sets a date IPO - HOW ? In an IPO, the issuer obtains the assistance of an underwriting firm, which helps determine what type of security to issue, the best offering price, the amount of shares to be issued and the time to bring it to market. When a company initiates the IPO process, a very specific set of events occurs. The chosen underwriters facilitate all of these steps. An external IPO team is formed, consisting of an underwriter, lawyers, certified public accountants (CPAs) and Securities and Exchange Commission (SEC) experts. Information regarding the company is compiled, including financial performance and expected future operations. This becomes part of the company prospectus, which is circulated for review. The financial statements are submitted for official audit. The company files its prospectus with the SEC and sets a date

WHY INVEST IN AN IPO ? Listing Gains . You do not have to pay any brokerage charge , if stock lists in premium then you may have immediate gain IPO prospectus give a lot of information to analyse stocks, which you may don’t see as much when purchasing stocks from secondary market. Some thought will go into whether to invest or not.

ASSET TURNOVER RATIO DIVIDEND YIELD K E Y F I N A N C I A L R A T I O S T O W A T C H O U T F O R I N A N I P O PRICE TO EARNING RATIO (P/E) PRICE TO BOOK VALUE RATIO (P/BV) DEBT TO EQUITY RATIO OPERATING PROFIT MARGIN ( EV/EBITDA ) PRICE TO EARNING GROWTH RATIO RETURN ON EQUITY INTEREST COVERAGE RATIO CURRENT RATIO ASSET TURNOVER RATIO DIVIDEND YIELD

POINTS TO WATCH OUT : 1. Why has the compafty elected to go public? ft. What will the compafty be doiftg with the moftey raised ift the IPO? What is the competitive laftdscape ift the market for the busiftess's products or services? What is the compafty's positioft ift this laftdscape? What are the compafty's growth prospects? What level of profitability does the compafty expect to achieve? What is the maftagemeftt like? Do the people iftvolved have previous experieftce ruftftiftg a publicly-traded compafty? Do they have a history of success ift busiftess vefttures? Do they have sufficieftt busiftess experieftce aftd qualificatiofts to ruft the compafty? Does maftagemeftt itself owft afty shares ift the busiftess? What is the busiftess's operatiftg history, if afty?

ISSUE SIZE V/S ISSUE PRICE GRAPH FROM EXCEL Y: Issue Size X: Issue Price

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