AFIN353 - Advanced Corporate Finance - Initial Public Offering - IPO - Finance Report Writing Assessment Answer

AFIN353: Advanced Corporate Finance Report Writing Assessment Answer

Assessment Task:

Assignment tasks
In topic 6, we introduced the process of raising equity through an Initial Public Offering (IPO), the associated challenge of determining the offer price, the role of the underwriters, the costs of the IPO and performance after the IPO is completed. You are required to obtain the prospectus for one Australian IPO (listing on ASX) completed between January 2016 and December 2018 to evaluate the IPO objectives, pricing, and outcomes. You can choose any IPO but don’t use companies from the mining sector or listed funds. It is always a good idea to study on a large-cap IPO because of the higher availability of information.

Your report must address the following for the IPO:
a) Describe the motivations for the IPO, the price-setting process and underwriting arrangements. (limit this to 300 words maximum)

b) Analyse and critique the capital structure (before and immediately after the IPO) and the appropriateness to a firm in this industry.

c) Analyse the offer price and provide your opinion of the reasonableness of the offer price (with regard to the prospectus information and your estimate of the firm’s value). Note that your analysis in this section should be ex-ante, which means your analysis must be based on the available information at the time of IPO and you should avoid using any post-IPO information to assess the reasonableness of the IPO offer price. For example, you can’t conclude that the offer price of Dick Smith is not reasonable because the company collapsed two year after its IPO.

d) Measure the performance of the IPO and critique the IPO success with regard to the original objectives and the costs to the pre-IPO shareholders with regard to any underpricing. You should conclude as to the relationship between value creation in an IPO, a firm’s growth, optimal capital structure and accounting profitability with regard to IPO strategy.

3. Report requirement
a) Word limit: 1500 to 1800 including charts and tables and excluding reference list. Marks will be deducted if the report exceeds 2000 words or is shorter than 1400 words. The penalty will be 1 mark (out of 25) for each 200 words or part thereof.

b) Your report will comprise:

• [Body of Report] You must determine your own headings and subheadings. Ensure that any tables or figures are labeled and are referred to within your analysis.

• Conclusion – This should capture the key outcomes of your analysis.

• References – ensure you use correct and consistent citation and referencing. Seek credible information sources. Data resources must be appropriately acknowledged (in-text or in footnotes). Citations and the reference list must be prepared following

Harvard style referencing.
• Do not include Appendices. The report should stand-alone.

This AFIN353: Finance Assessment has been solved by our Finance experts at My Uni Paper. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our experts are well trained to follow all marking rubrics & referencing style.

Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turnitin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.