management decided to embark in a second IPO process. Netflix’s management decided to pursue a public offering given the need to raise additional capital in order to sustain and grow the business. However‚ there are some internal and external factors that can affect a company’s decision to pursue a public offering: • The main internal factor is the funding concern‚ in order to sustain and grow the business‚ a company has different alternatives of funding; an IPO allows a company to raise equity‚ which
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themselves strapped for cash. Netscape would definitely fall into this category as it increasing felt the pressure and loss of market-share to a growing number of competitors. Many companies find it desirable to "go public" with an initial public offering (IPO) when their equity capital needs increase to the point where the opportunity cost of remaining private and compensating investors for the lack of liquidity becomes too great relative to the lower coat of capital derived from liquid public markets (Netscape
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Advantages / Disadvantages of the IPO Decision There are considerable advantages with obtaining equity through the IPO process. There are‚ however‚ some drawbacks that also need to be taken into consideration. Some of the advantages and disadvantages are: Advantages | Disadvantages | * Equity value is established for the firm * Current shareholders can diversify personal portfolios | * SEC requires public disclosure of financial information (transparency) * IPO expenses | * Liquidity
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Top of Form Netscape IPO Introduction The case analyzes the Initial Public Offering (IPO) of Netscape Communications Inc.‚ in order to recommend a justifiable share price for the IPO. Founded in April 1994‚ Netscape Communications Corporation provided a comprehensive line of client‚ server and integrated applications software for communications and commerce on the Internet and private Internet Protocol networks. The primary revenue generator for Netscape at the time IPO was it ’s Internet Browser
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The 15th Financial Case Analysis Contest Analysis Report Case Name: PRADA: TO IPO OR NOT TO IPO: THAT IS THE QUESTION‚ AGAIN Report Title: SWEET ARE THE USES OF IPO Team Name: WINDTRACKER DATE: 16/12/2012 Contents ABSTRACT 1 1. Macro and Industry Analysis 3 1.1 Financing Environment 3 1.1.1 International Monetary Market 3 1.1.2 International Bond Market 7 1.1.3 International Stock Market 9 1.1.4 International Private Equity Market 10 1.2 Industry Analysis
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Characteristic of IPO Initial Public Offering (IPO) has lots of unique characteristics which including short-term underpricing‚ price stabilization‚ and investment banks. IPOs are always underpriced which means the pricing of IPOs often below its market value. This is because of concerns relating to liquidity and uncertainty about the level at which stock will trade. The lesser the liquid and uncertainty about the shares are‚ the more underpriced they will have to be in order to compensate investors
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Introduction ----------------------------------------------------------------- 4 What Is An IPO ---------------------------------------------------------------- 5 Why Go Public ----------------------------------------------------------------- 8 Getting In An IPO ----------------------------------------------------------- 9 IPO Advantages & Disadvantages ---------------------- 11 Parameters To Judge An IPO ----------------------------------- 14 Understanding The Role Of Intermediaries --
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Revisiting “Truth in Securities Revisited”: Abolishing IPOs and Harnessing Private Markets in the Public Good A.C. Pritchard* Abstract: This essay explores the line between private and public markets. I propose a two‐tier market system to replace initial public offerings. The lower tier would be a private market restricted to accredited investors; the top tier would be a public market with unlimited access. The transition between the two markets would be based on
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Shelley Rushing SeaWorld IPO Week 5 SeaWorld Entertainment Inc.‚ was wholly owned by the Blackstone Group L.P.‚ before SeaWorld went public. SeaWorld owns eleven theme parks in the United States and attracts about 24 million visitors (market watch). As noted above they are in the theme park industry just like Disney and Six Flags with a proven business model and plenty of room for growth. It offers strong consumer value proposition and caters to a broad range of guest from all over the world
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Management Accounting Research Paper – IPOS - SOFT The chosen technology is the Enterprise Resource System (ERP) IPOS. IPOS is a system that was created and has been developed for use mostly in civil-engineering companies. It is also software developer by a Czech company that is mostly used in the Czech Republic‚ but also in Slovakia. It is one of the best software programs in this industry and is widely used by small companies as well as by large companies foreign origin such as COLAS CZ‚ a.s
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