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the article seems most focused on certain technical details instead of a more general explanation
most people come to this article because they dont know anything about investing
I recently filled in some details on the greenshoe option often used in public offerings and believe that a link to that wiki entry would be appropriate in this section, so I intend to make an entry here with a link. I also think I might be able to add some more informative detail to this entry directly. Duedilly 04:38, 30 September 2006 (UTC)
Also if someone can point out how new stock/IPO are traded, that will be helpful. —Preceding unsigned comment added by 67.170.249.19 ( talk) 16:04, 14 October 2007 (UTC)
I think mentioning which SEC filings are involved with IPOs is important. The S-1 filing contains all the information anyone could want regarding company information, share distribution/amounts/pricing, risk factors, and other information. It was deleted by a moderator when added to links, so should I add this as a new section, or is it not important enough?
Can anyone explain what the following terms mean?
post issue capital
floor price
cap price
P/E
EPS
cut- off price
Here is a paragraph for reference:
The issue is priced at 11.90x FY07 E (HY 07 annualized) earnings on post issue capital at floor price and at 13.84x at cap price. The comparable peer is trading at a P/E of 36.31x with an EPS of Rs 41.44 (FY 07).
We recommend the investors to subscribe at the cut- off.
Thanks in advance,
Prasadpkamath
08:59, 4 May 2007 (UTC)
post issue capital
The capitalization after the offering. If the company had 1mm shares outstanding prior to the offering and was selling another million in the offering, investors are interested on per share numbers post-offering, as that would be the number tha applies to the shares they are considering buying in the offering.
floor price
cap price
In the context of your paragraph these seem to relate to the minimum and maximum likely price, per share, of the offering
P/E
Price-earnings ratio
P/E ratio
cut- off price I'm not sure from the context what is meant by this.
-- Conant Webb 19:22, 8 August 2007 (UTC)
It appears that User:Rmudambi, who has a number of edits to this article, has added numerous references to his own published works. Jauerback 03:14, 20 July 2007 (UTC)
I've added the first(!) inline citation to this article while clearing up the quiet period confusion (yes, there are two of them and no, the former still exists). I hope people will follow the trend and add more inline citations and, in so doing, clear out the rubbish references sections at the end of every section as well. For an article that, no doubt, gets ridiculously many page hits, it really, really ought to be inline cited. -- Meowist 18:05, 1 September 2007 (UTC)
If you look at the charts following many IPOs, you'll notice that after a few months the stock takes a steep downturn. This is often because of the lock-up period.
When a company goes public, the underwriters make company officials and employees sign a lock-up agreement. Lock-up agreements are legally binding contracts between the underwriters and insiders of the company, prohibiting them from selling any shares of stock for a specified period of time. The period can range anywhere from three to 24 months. Ninety days is the minimum period stated under Rule 144 (SEC law) but the lock-up specified by the underwriters can last much longer. The problem is, when lockups expire all the insiders are permitted to sell their stock. The result is a rush of people trying to sell their stock to realize their profit. This excess supply can put severe downward pressure on the stock price. —Preceding unsigned comment added by 112.110.9.244 ( talk) 10:41, 20 February 2009 (UTC)
Thought it was worth noting that the last paragraph in the introduction was lifted from Investopedia: http://www.investopedia.com/terms/i/ipo.asp - it should at least be quoted with a reference. -- Scumble ( talk) 11:24, 8 April 2010 (UTC)
Why was my October 9, 2010 edits removed? 76.65.23.118 was the one who removed them. War59312 ( talk) 19:46, 5 December 2010 (UTC)
can someone please put some explantion on a "reverse IPO" in this article? Jackzhp 19:39, 20 April 2007 (UTC)
There is really no such thing as a "reverse IPO." You may be referring to a "reverse merger" but that shouldn't be called a "reverse IPO". In a reverse merger, a private company merges into a publicly traded shell and there is not necessarily an "initial" or even a "public offering" of shares. It's just a merger. -- Jarbdpo 09:15, 25 February 2011 (UTC)
Will Only Common Stock be issued for first sale in case of an IPO or non-equity also will be issued??
125.16.11.68 06:20, 4 August 2007 (UTC)Ravi 125.16.11.68 06:20, 4 August 2007 (UTC)
Hi. I think it would be a good idea to include here how much investment banks charge on average for IPOs. I heard the average is about 3%, although I might be mistaken. Can someone confirm this and include this information into the article? -- M.efimov ( talk) 09:58, 7 September 2010 (UTC)
Investment banks charge more than 3% of the amount raised. As a former partner of a large independently owned investment banking firm, we charged 6% to 10% of the capital raised, reimbursement of all fees/expenses (usually another 2% to 3% of the capital raised) plus a broker warrant equivalent to 10% of the stock issued. For example, if the financing was to raise $10 million by selling 1 million shares at $10 per share, we would generally earn $800,000 in commissions, $200,000 in expense reimbursements and obtain a warrant to purchase 100,000 shares (10% of the deal size) at $10 per share (the deal price). -- Jarbdpo 09:15, 25 February 2011 (UTC)
First, Petrobras's $70 billion capital raised was not in form of IPO (Petrobras was listed in the exchange long ago.)
Second, please check whether the size of GM's IPO is correct. From "Global IPO report 2011" by Earnst & Young, the size of that issue should be $18.1 billion.
Therefore, the largest three IPOs should be Agricultural Bank of China, Industrial and Commercial Bank of China and AIA Group.
Cheers, Enoch — Preceding unsigned comment added by 202.64.103.81 ( talk) 06:53, 30 August 2011 (UTC)
Would it be useful to include a discussion of who gets access to IPO shares, and the bias of the underwriting process against smaller, non-institutional investors? — Preceding unsigned comment added by 173.74.34.41 ( talk) 03:01, 13 January 2012 (UTC)
I have been been working on this article in an attempt to organize and expand a few of the sections. However, many of the statements remain unsupported, and so need additional references. Gulbenk ( talk) 04:52, 12 July 2012 (UTC)
GA toolbox |
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Reviewing |
Reviewer: TheSpecialUser ( talk · contribs) 14:55, 23 October 2012 (UTC)
I really don't like to quickly fail any nomination but unfortunately this is a similar case. The article is fairly big but with only 26 refs; nothing wrong with the number but large amount of facts are not sourced. Many paras are completely unsourced. In fact, many sections are entirely unsourced. The refs used need to be formatted properly. The article is tagged with one issue but it needs many tags such as refimprove, OR etc. I'm sorry to say but this article is far away from GA and thus, this has to be a quick fail. The issues cannot be addressed in 3 or 4 months so, have to fail. Good work is done on the article but not enough as each and every fact in the article should have sources which are well formatted. I'm not digging in any further and just failing it mainly due to lack of refs which are needed for verification of the material. Thank you. TheSpecialUser TSU 14:55, 23 October 2012 (UTC)
The first section has a list of benefits of being a public company, but no list of disadvantages. I am no expert but I can't imagine that there are no disadvantages. It makes the section read like a pep talk or a brochure or something, but not like an encyclopedia article. Omgoleus ( talk) 21:39, 21 May 2010 (UTC)
I will add the disadvantages. -- Jarbdpo 09:16, 25 February 2011 (UTC)
Those provided are appreciated but isn't this the exact point in which the company is now all but required to generate as much profit as it can with cost/benefit and risk/reward (obviously legal implications) analysis? Am I alone in thinking this is why we have the problem we have in the United States with corporations running government and driving our financial system into the ground without the ability to stop? Seems to me that when you have enough of these "people", created by money and whose only purpose is to generate money, all changing policy so they can more effectively make money, we have imminent disaster.
Hello Inventive Exile, be sure to sign your comments in the Talk section with four ~. Now to answer your question. Some companies that go public are not under any immediate pressure to produce profits. Junior pharmaceutical companies in clinical trials, and early stage mining companies come to mind as two examples. In those cases, the money raised from the IPO will advance them along their timeline, but they will probably have to raise additional capital before (and if) they achieve commercial production. But, yes, most corporations do have a strong incentive to produce profits. You see this as wrong? Where would the capital come from, to do research, to explore for resources, to produce the goods that we consume, if investors were not offered the possibility of a profit? In a system where the means of production is held by all, the funds would come from the State. In our system, the funds come from the private sector. Most investors will not put their capital at risk without the possibilty of a reward. The "imminent disaster" you fear would surely come about if the profit incentive is removed from the equation. Gulbenk ( talk) 22:29, 10 November 2012 (UTC)
![]() | This page is an archive of past discussions. Do not edit the contents of this page. If you wish to start a new discussion or revive an old one, please do so on the current talk page. |
the article seems most focused on certain technical details instead of a more general explanation
most people come to this article because they dont know anything about investing
I recently filled in some details on the greenshoe option often used in public offerings and believe that a link to that wiki entry would be appropriate in this section, so I intend to make an entry here with a link. I also think I might be able to add some more informative detail to this entry directly. Duedilly 04:38, 30 September 2006 (UTC)
Also if someone can point out how new stock/IPO are traded, that will be helpful. —Preceding unsigned comment added by 67.170.249.19 ( talk) 16:04, 14 October 2007 (UTC)
I think mentioning which SEC filings are involved with IPOs is important. The S-1 filing contains all the information anyone could want regarding company information, share distribution/amounts/pricing, risk factors, and other information. It was deleted by a moderator when added to links, so should I add this as a new section, or is it not important enough?
Can anyone explain what the following terms mean?
post issue capital
floor price
cap price
P/E
EPS
cut- off price
Here is a paragraph for reference:
The issue is priced at 11.90x FY07 E (HY 07 annualized) earnings on post issue capital at floor price and at 13.84x at cap price. The comparable peer is trading at a P/E of 36.31x with an EPS of Rs 41.44 (FY 07).
We recommend the investors to subscribe at the cut- off.
Thanks in advance,
Prasadpkamath
08:59, 4 May 2007 (UTC)
post issue capital
The capitalization after the offering. If the company had 1mm shares outstanding prior to the offering and was selling another million in the offering, investors are interested on per share numbers post-offering, as that would be the number tha applies to the shares they are considering buying in the offering.
floor price
cap price
In the context of your paragraph these seem to relate to the minimum and maximum likely price, per share, of the offering
P/E
Price-earnings ratio
P/E ratio
cut- off price I'm not sure from the context what is meant by this.
-- Conant Webb 19:22, 8 August 2007 (UTC)
It appears that User:Rmudambi, who has a number of edits to this article, has added numerous references to his own published works. Jauerback 03:14, 20 July 2007 (UTC)
I've added the first(!) inline citation to this article while clearing up the quiet period confusion (yes, there are two of them and no, the former still exists). I hope people will follow the trend and add more inline citations and, in so doing, clear out the rubbish references sections at the end of every section as well. For an article that, no doubt, gets ridiculously many page hits, it really, really ought to be inline cited. -- Meowist 18:05, 1 September 2007 (UTC)
If you look at the charts following many IPOs, you'll notice that after a few months the stock takes a steep downturn. This is often because of the lock-up period.
When a company goes public, the underwriters make company officials and employees sign a lock-up agreement. Lock-up agreements are legally binding contracts between the underwriters and insiders of the company, prohibiting them from selling any shares of stock for a specified period of time. The period can range anywhere from three to 24 months. Ninety days is the minimum period stated under Rule 144 (SEC law) but the lock-up specified by the underwriters can last much longer. The problem is, when lockups expire all the insiders are permitted to sell their stock. The result is a rush of people trying to sell their stock to realize their profit. This excess supply can put severe downward pressure on the stock price. —Preceding unsigned comment added by 112.110.9.244 ( talk) 10:41, 20 February 2009 (UTC)
Thought it was worth noting that the last paragraph in the introduction was lifted from Investopedia: http://www.investopedia.com/terms/i/ipo.asp - it should at least be quoted with a reference. -- Scumble ( talk) 11:24, 8 April 2010 (UTC)
Why was my October 9, 2010 edits removed? 76.65.23.118 was the one who removed them. War59312 ( talk) 19:46, 5 December 2010 (UTC)
can someone please put some explantion on a "reverse IPO" in this article? Jackzhp 19:39, 20 April 2007 (UTC)
There is really no such thing as a "reverse IPO." You may be referring to a "reverse merger" but that shouldn't be called a "reverse IPO". In a reverse merger, a private company merges into a publicly traded shell and there is not necessarily an "initial" or even a "public offering" of shares. It's just a merger. -- Jarbdpo 09:15, 25 February 2011 (UTC)
Will Only Common Stock be issued for first sale in case of an IPO or non-equity also will be issued??
125.16.11.68 06:20, 4 August 2007 (UTC)Ravi 125.16.11.68 06:20, 4 August 2007 (UTC)
Hi. I think it would be a good idea to include here how much investment banks charge on average for IPOs. I heard the average is about 3%, although I might be mistaken. Can someone confirm this and include this information into the article? -- M.efimov ( talk) 09:58, 7 September 2010 (UTC)
Investment banks charge more than 3% of the amount raised. As a former partner of a large independently owned investment banking firm, we charged 6% to 10% of the capital raised, reimbursement of all fees/expenses (usually another 2% to 3% of the capital raised) plus a broker warrant equivalent to 10% of the stock issued. For example, if the financing was to raise $10 million by selling 1 million shares at $10 per share, we would generally earn $800,000 in commissions, $200,000 in expense reimbursements and obtain a warrant to purchase 100,000 shares (10% of the deal size) at $10 per share (the deal price). -- Jarbdpo 09:15, 25 February 2011 (UTC)
First, Petrobras's $70 billion capital raised was not in form of IPO (Petrobras was listed in the exchange long ago.)
Second, please check whether the size of GM's IPO is correct. From "Global IPO report 2011" by Earnst & Young, the size of that issue should be $18.1 billion.
Therefore, the largest three IPOs should be Agricultural Bank of China, Industrial and Commercial Bank of China and AIA Group.
Cheers, Enoch — Preceding unsigned comment added by 202.64.103.81 ( talk) 06:53, 30 August 2011 (UTC)
Would it be useful to include a discussion of who gets access to IPO shares, and the bias of the underwriting process against smaller, non-institutional investors? — Preceding unsigned comment added by 173.74.34.41 ( talk) 03:01, 13 January 2012 (UTC)
I have been been working on this article in an attempt to organize and expand a few of the sections. However, many of the statements remain unsupported, and so need additional references. Gulbenk ( talk) 04:52, 12 July 2012 (UTC)
GA toolbox |
---|
Reviewing |
Reviewer: TheSpecialUser ( talk · contribs) 14:55, 23 October 2012 (UTC)
I really don't like to quickly fail any nomination but unfortunately this is a similar case. The article is fairly big but with only 26 refs; nothing wrong with the number but large amount of facts are not sourced. Many paras are completely unsourced. In fact, many sections are entirely unsourced. The refs used need to be formatted properly. The article is tagged with one issue but it needs many tags such as refimprove, OR etc. I'm sorry to say but this article is far away from GA and thus, this has to be a quick fail. The issues cannot be addressed in 3 or 4 months so, have to fail. Good work is done on the article but not enough as each and every fact in the article should have sources which are well formatted. I'm not digging in any further and just failing it mainly due to lack of refs which are needed for verification of the material. Thank you. TheSpecialUser TSU 14:55, 23 October 2012 (UTC)
The first section has a list of benefits of being a public company, but no list of disadvantages. I am no expert but I can't imagine that there are no disadvantages. It makes the section read like a pep talk or a brochure or something, but not like an encyclopedia article. Omgoleus ( talk) 21:39, 21 May 2010 (UTC)
I will add the disadvantages. -- Jarbdpo 09:16, 25 February 2011 (UTC)
Those provided are appreciated but isn't this the exact point in which the company is now all but required to generate as much profit as it can with cost/benefit and risk/reward (obviously legal implications) analysis? Am I alone in thinking this is why we have the problem we have in the United States with corporations running government and driving our financial system into the ground without the ability to stop? Seems to me that when you have enough of these "people", created by money and whose only purpose is to generate money, all changing policy so they can more effectively make money, we have imminent disaster.
Hello Inventive Exile, be sure to sign your comments in the Talk section with four ~. Now to answer your question. Some companies that go public are not under any immediate pressure to produce profits. Junior pharmaceutical companies in clinical trials, and early stage mining companies come to mind as two examples. In those cases, the money raised from the IPO will advance them along their timeline, but they will probably have to raise additional capital before (and if) they achieve commercial production. But, yes, most corporations do have a strong incentive to produce profits. You see this as wrong? Where would the capital come from, to do research, to explore for resources, to produce the goods that we consume, if investors were not offered the possibility of a profit? In a system where the means of production is held by all, the funds would come from the State. In our system, the funds come from the private sector. Most investors will not put their capital at risk without the possibilty of a reward. The "imminent disaster" you fear would surely come about if the profit incentive is removed from the equation. Gulbenk ( talk) 22:29, 10 November 2012 (UTC)