Posted: September 13th, 2017

Select an IPO, and do the Valuation

Paper, Order, or Assignment Requirements

Part A, the IPO has been chosen by myself. All the data of the chosen IPO is upload. This is a group assignment, you just need to answer question 1 and 2 which I use the BLUE color to mention it in part B. The rest of questions, just leave it.
The work need to be No plagiarism(under 10%)

Part A, the IPO has been chosen by myself. All the data of the chosen IPO has already download from Thompsonone. This is a group assignment, you just need to answer question 1 and 2 which I use the BLUE color to mention it in part B. The rest of questions, just leave it.

The work need to be No plagiarism(under 10%)

1. a) Use ThomsonONE.com database1, to find UK companies which went public between 01/01/2000 and 31/12/2013, whose IPO was Private Equity backed:

• i)  Select Screening & Analysis >Deals & League Tables>Equity>Advanced Search
• ii)  Company>Location>Issue/Borrower Nation (select UK)
• iii)  Deal Info>Dates>Dates: Issue Date (select 01/01/2000 – 31/12/2013).
• iv)  Deal Info>Issue Type (select IPO)
• v)  Item Search > Private Equity. Select PE_BACKED_IPO_FLAG and ‘Select 
All Private Equity Backed IPO Issues’

You can execute the query and for this criteria over 50 (or 100)* deals should be found. Select Preview to view the results. You should download the data on in an Excel spreadsheet by clicking on Excel icon in the top right hand corner of the screen. You should name the above file as: PEVF ‘your group no.’.xls. You will notice that some of the IPOs have ‘F’ sign next to the name of the companies. For those companies various filings are available. Select the filings icon and check for IPO prospectuses. Download and save the available PDF files with IPO/listing prospectuses. Find and download details regarding characteristics of Private equity deals (e.g. name of PE firms, amount invested, syndications, etc.) The PDF files containing prospectuses and characteristics of PE deals could be easily searched using bookmarks containing table of content (left hand side of the screen).

1. b) Select ONE IPO, with available prospectus, and answer the following questions:

1) What is the most reliable method of valuing new companies in primary (i.e.

IPO) markets?

2) How should the selected company go about valuing the company?

3) Estimate the value of the company (i.e. offer price) using at least two valuation methods. At what price should the stock be offered?

1. iv) Compare your estimated offer price with the price disclosed in the IPO prospectus. Explain the difference.

4) Compare the offer price disclosed in the IPO prospectus with the stock’s closing price on the first trading day. Explain the difference.

5) Evaluate long term performance of the stock up to 1 year after the listing. Discuss your results.