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Transcript of IPO Presentation
Le Thuy An
Nguyen Khanh Linh
Nguyen Phuong Thao Tips of Pre-IPO and Post-IPO Definition & Reasons for IPO IPO Process 1. Definition of IPO the first time a company sells stocks to the public, also known as GOING PUBLIC. Fund organic growth
Pay back investors
Merger and Acquisitions 1.Preparation 3. IPO Promotion 4. Pricing 2. Becoming a slave
of stock price * Share price is subject to fluctuate rapidly Tips of Pre-IPO & Post-IPO Young, small companies seeking the capital to expand.
Large privately owned companies looking to become publicly traded. 1. Raise capital for growth and expansion Reasons for IPO The shares listed on stock market: easily traded, more marketable
Company’s principals: get more bank loans
Both investors and CO founders: opportunity for an exit strategy, portfolio diversification, flexibility of asset allocation 2. Increased Liquidity Marketing itself
Generating prestige, public awareness and visibility
Attracting and retaining qualified managers and employees
Raising credibility ratio 3. Publicity and Prestige Trading 5. Trading * The “general public” can buy and sell share from investment bank. 1. Tips for Pre-IPO * Money: very expensive: 1. Taking high costs 3. Being obliged to disclose financial information * Business affairs & financial statements must be published at large 4. Taking more legal restriction Disadvantages of IPO GROUP 4: Discussing the offering, the required registration forms, figure out tasks…
Determining the timing for the filing. to make sure that the registration statements are accurate The roles of a right investment bank
An underwriter SECURE THE CONTINUING GROWTH THE MORE LIQUIDITY, THE MORE VALUE * Initial Public Offering (IPO) : S-1 form filing * Types of company doing IPO: Preparation 3.1. The road-show * Countrywide or international trips * Presentation to get a feel of potential investors Position in market
Clear history and current business
Potential growth A “subscription” to purchase share can be made. 3.2. The change in amount and price of share: * depends on the estimated demand of pulic * not too much 4.1. Terms to consider Market condition
Scope of company
The demand of share 4.2. 2 types of price Fixed price
Book price band * The Investment bank purchases share and get commission of 7% from initial share price. Pre-IPO Internal
preparation * Plan in detail what to accomplish
* Examine your financial needs and wants
* Develop a business plan and prepare financial statements
=> Act like a public company even before it goes public * Suitable time to undertake IPO
* Scheduling a meeting with a consultant
* Contracting with an investment banker to determine
how much money
what portion of the company Post- IPO * Building effective relationships 2.Maintaining the pace of growth 1. Getting on well with investors * Focusing on the long term
* Keeping the IPO in context 1. The investment bank contraction: 2. The kick-off meeting : 3. The due diligence: Customer Calls
Industry / Market Due Diligence
Legal and IP Due Diligence
Financial and Tax Due Diligence 2. S-1 form filing Information about company
Information about offering plan
SEC: scrutinizes the information in S-1 and stamps on it.
Used as an initial document to get stockholder’s notice an legal document to be declared S-1 form:
The registration statement Preliminary prospectus: red herring Final/Official prospectus Definition and
reasons for IPO Reasons for IPO IPO Promotion Pricing Reasons for IPO * Time: taking up to 6 months or longer
=> operation may suffer during the IPO process Requiring large underwriting fees
Plus continued costs for annual reports
Having significant ongoing costs associated with its operation. => Leading to serious consequences:
loss of confidence in management
... => Decrease confidentiality * Suffer from an increase in the risk of exposure to civil liability. * Be subject to much more accounting rules and principles. 2. Tips for Post-IPO * Prioritizing your efforts * Keeping refreshing and retelling your “story” Conclusion - IPO is the first sale of stock of a private company to the public. - There are both advantages and disadvantages that arise when a company goes public - The road to IPO is similar to rearing a child, then sending him to college. The parents' job is to prepare Junior well enough to be successful on his or her own.
* Investment bank: a financial institution that helps companies take new bond or stock issues to market.
* In Viet Nam, Investment Bank = Securties Companies & some Commercial Banks