Detail Pricing IPOs : Science or Science Fiction ?   Oleh:  McCarthy, Ed Jenis: Article from Bulletin/Magazine Dalam koleksi: Journal of Accountancy vol. 188 no. 3 (1999), page 51-60. Topik: PRICING; pricing IPO s; science; fiction Ketersediaan Perpustakaan Pusat (Semanggi) Nomor Panggil: JJ85.9 Non-tandon: 1 (dapat dipinjam: 0) Tandon: tidak ada     Lihat Detail Induk Isi artikel It's show time. After months of preparation, your company's initial public offering (IPO) will start trading this morning. You spent yesterday afternoon anxiously tracking the market. The investment bankers canvassed their institutional brokers to assess interest in your stock. The company finance and accounting staff have spent countless hours preparing for the day. The final decision : The company will sell 2 million shares at $20 each, for a total offering of $40 million. The investment bankers say demand for your IPO looks strong, and they expect your stock to open with a "pop." That prediction proves true - the shares open at $23 and the price moves steadily higher throughout the trading day, finally closing at $25. Although the stock's strong first - day performance is gratifying, you can't shake the feeling that you might have mispriced the IPO. The calculations run through your mind : Each $1 increase in the offering price would have generated $2 million more for the company. The thought nags you -did you sell too cheaply ? When an IPO quickly moves to a significantly higher price during its first day on the market, it's natural to wonder if the investment bankers - and the issuing company's officers - didn't misprice the deal. Although the market for IPO s has cooled recently, some offerings still post impressive first - day gains. In mid - June, for example, 6 million shares of GOTO.com came to market at $15 and closed at $22.375, after trading as high as $28.50. Not too long ago, Internet and technology IPO s routinely doubled in value on their first day. That kind of volatility makes it inevitable to second - guess. The MarketWatch.com offering exemplifies the incredible demand that has existed for these issues. The company, an online financial news service, went public January 15, 1999, with an offering price of $17. It closed the day at $97.50, an increase of 474 %. In another instance, theglobe.com went up 606 %, from $9 to $63.50 on its first day, in November 1998. These enormous price surges raise questions about whether traditional valuation methods remain valid. Not surprisingly, however, investment bankers and CFO s who have taken their companies public recently dispute the notion that IPO pricing rules have changed. Opini Anda Klik untuk menuliskan opini Anda tentang koleksi ini! Kembali

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