Initial Public Offerings (IPOs)

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Overview

This programme is designed to enable participants to become proficient in their understanding of the IPO process. It covers a broad spectrum of topics which are designed to ensure that participants are equipped with the financial skills-set necessary to understand how IPOs are arranged, managed, priced and distributed.

The course features:

  • Strategic considerations; flotation or sell
  • The due diligence process
  • Corporate restructuring steps pre-IPO
  • Selecting the right exchange for the floatation
  • IPO valuation
  • Multiple based valuation methodologies
  • Accounting scams
  • Marketing the IPO
  • IPO underwriting
  • IPO issues
  • Investor strategies in an IPO
  • Secondary offerings
  • New developments in IPO business

The course provides participants with a working knowledge of the principles and practices of the launch of companies on an exchange by means of IPO. It ensures that participants acquire a sufficiently thorough understanding of the subject. The course should appeal to executives and managers; professionals in all functions; investment and commercial bankers; equity and fixed income investment managers; investment and analysts; credit analysts and credit controllers; treasury managers and staff; lawyers and newly-qualified accountants; company brokers and advisers.

Who should attend

  • executives and managers
  • professionals in all functions
  • investment and commercial bankers
  • equity and fixed income investment managers
  • investment and analysts
  • credit analysts and credit controllers
  • treasury managers
  • lawyers and newly-qualified accountants
  • company brokers and advisers

Venue

Venue to be confirmed

All our courses are held in 4 or 5 star city centre hotels. Further details will be sent on registration.

Related Courses

Inhouse


 

Do you have five or more people interested in attending this course? Do you want to tailor it to meet your company's exact requirements? If you'd like to do either of these, we can bring this course to your company's office. You could even save up to 50% on the cost of sending delegates to a public course.

To find out more about running this course in-house:





Our Tailored Learning Offering

If you want to run this course at a location convenient to you or if you want a completely customised learning solution, we can help.

We produce learning solutions that are completely unique to your business. We'll guide you through the whole process, from the initial consultancy to evaluating the success of the full learning experience. Our learning specialists ensure you get the maximum return on your training investment.

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We can offer any of our public courses delivered at your office or we can devise completely tailored solutions:


Read more about our offering or complete a call back request to speak to a learning specialist.

 

Agenda

 
Day 1: IPO preparation and planning

 
 Session 1 – The decision to float

  • Why float?
  • Exit strategies for existing shareholders
  • Strategic considerations: float or sell?
  • Evaluating the alternatives: the advantages and disadvantages
  • Pre-conditions to a flotation: not all companies are suitable
  • Selecting the market: AgBank dual listing
  • Selecting financial advisers
  • Investment bank conflicts

 
Case study: US IPO failure
 
Session 2 – The due diligence process

  • The objective of the due diligence exercise
  • The long form report
  • Legal due diligence
  • Investigation of the suitability of directors
  • Evaluating the competitive position
  • Accounting policies and window dressing

 
Case study: Due diligence issues
 
Session 3 – Restructuring and prospectus issues

  • Essential corporate restructuring steps pre-IPO
  • Selecting the appropriate capital structure
  • Organising the issuer to provide the resources
  • Timetable considerations
  • Prospectus responsibility – whose?
  • Listing requirements – selecting the right exchange for the flotation
  • Senior versus junior market (Main board v GEM)

 
Case study: Review of senior and junior markets
 
Session 4 – IPO documentation

  • Documents needed
  • Detailed timetable content for HK
  • Lock-up agreements
  • American depositary receipts (ADRs and Global DRs)
  • Prospectus responsibility – whose?

 
Exercise: Review of key documentation: Rusal IPO
 

 

Day 2: IPO valuation and marketing

 
Session 1 – IPO valuation

  • Capital structure and its impact on value
  • Weighted average cost of capital (WACC)
  • Valuation using WACC
  • Capital asset pricing model (CAPM)

 
Case study: Computation of cost of equity, cost of debt, WACC, regearing beta
 
Session 2 – Using WACC

  • Preparing cash flows
  • The forecast and terminal value periods
  • Calculating cost of equity
  • Calculating WACC
  • Selecting beta

 
Case study: Computing WACC and adjusting for differences in gearing
 

Session 3 – IPO valuation based on WACC

  • Growth rates in the terminal value period
  • Common mistakes in WACC
  • Forecasting reinvestment
  • Return on invested capital
  • Pre-IPO research: Orange Telecom

 
Case study: Spin off valuation using WACC
 
Session 4 – Multiple based valuation methodologies

  • The price earnings ratio (PER)
  • Valuation using PER
  • Comparable company analysis
  • Theoretical background
  • Strengths and weaknesses
  • Alternative multiples
  • Ratios based on earnings before interest and tax (EBIT)

 
Case study: IPO valuation using PERs and EBIT ratios: AZ, Asian chemicals company listing in London
 
 

Day 3: Marketing and underwriting the IPO

 
Session 1 – Valuation of special case companies

  • Valuation of companies with sales but no profits
  • Valuation of companies with no sales
  • Valuation of mining companies
  • Valuation of property companies
  • IPO bubbles

 
Exercise: Participants value a series of non-standard IPOs
 
Session 2 – Marketing the IPO

  • Book-building/placing as an issue method
  • Offers for sale as an issue method
  • Introductions
  • The role of the analyst
  • Roadshows and company visits
  • Preparing the management

 
Case study:
The overallotment option/Greenshoe
 
Session 3 – IPO Underwriting

  • Hard and soft underwriting
  • The financial risk in underwriting
  • Underwriting as an option
  • Competition issues in fees charged
  • Underwriting in public offers

 
Case study: Review of the underwriting risk in a book-built issue
 
Session 4 – IPO abuses in the TMT boom

  • In-house financial analysis
  • Third party research
  • Bidding or indicating interest
  • Aftermarket orders – a possible abuse
  • Other abusive practices covered in the Global Settlement

 
Case study: Recent developments in IPOs: the Open IPO and competitive tender
 
Course summary and close

Why us


We have a combined experience of over 60 years providing learning solutions to the world’s major organisations and are privileged to have contributed to their success. We view our clients as partners and focus on understanding the needs of each organisation we work with to tailor learning solutions to specific requirements.

We are proud of our record of customer satisfaction. Here is why you should choose us to help you achieve your goals and accelerate your career:

  • Quality – our clients consistently rate our performance ‘excellent’ or ‘outstanding’. Our average overall score awarded to us by our clients is nine out of ten.
  • Track record – we have delivered training solutions for 95% of worlds’ top 100 banks and have trained over 250,000 professionals.
  • Knowledge – our 150 strong team of industry specialist trainers are world leading financial leaders and commentators, ensuring our knowledge base is second to none.
  • Reliability – if we promise it, we deliver it. We have delivered over 20,000 events both in person and online, using simultaneous translation to delegates from over 180 countries.
  • Recognition – we are accredited by the British Accreditation Council and the CPD Certification Service. In an independent review by Feefo we scored 96% on service and 95% on product