How many companies went public per year over the last 10-year period? How do you explain this variation in the "popularity" of going public?
Analyze the prospectus of 10 companies that went public in 2003. Which companies do you believe are likely to do well in the public offering, and which do you believe will do worse? Conduct the following calculation to test your propositions: Stock price after 1 week 2 offering price/offering price. Compare this price with the original IPO price.
Analyze the prospectus of five companies going public. What are the reasons they state for going public? How are they going to use the proceeds? What are the major risk factors presented?
If an entrepreneur asked you to list the five best investment bankers that could be used to take his or her company public, which would you suggest? Why?
