Compare the advantages and disadvantages of using a Dutch Auction to a traditional underwriting method for an IPO.
Prior to beginning work on this discussion forum, read Chapter 15 in the Foundations of Financial Management textbook.
Initial Response:
For this discussion forum,
Compare the advantages and disadvantages of using a Dutch Auction to a traditional underwriting method for an IPO.
Identify one real-life IPO that occurred in 2020. Try to select a company that a fellow student has not already selected.
For this one IPO, determine the following:
The initial price
The stock price at the end of the first day of trading
The stock price at the end of 10 days of trading
The stock price at the end of 30 days of trading
State the following in your post:
The total amount of the offering
The number of shares offered
The underwriter
The fees for the IPO
Evaluate the success of this IPO from the perspective of the issuer; the underwriter, and investors.
Your initial response should be a minimum of 200 words.
Reference book
Block, S. B., Hirt, G. A., & Danielsen, B. R. (2022). Foundations of financial management (18th ed.). McGraw-Hill Higher Education.
- Chapter 14: Capital Markets
- Chapter 15: Investment Banking
- The full-text version of this ebook is available through the VitalSource platform. Chapter 14 provides an overview of the international capital markets and will assist you in your Capital Markets discussion forum this week. Chapter 15 provides an overview of the services provided by investment banks and will assist you with your Raising Capital discussion forum this week.
Answer preview to Compare the advantages and disadvantages of using a Dutch Auction to a traditional underwriting method for an IPO.
APA
346 words
