Assume that you are currently working at one of the top investment banks.
You are required to appraise Sheng Siong Group Ltd (SGX:OV8) IPO that is floated in the Singapore Stock Exchange between 2011 to 2017.
Using Thomson One, Yahoo Finance, Ft.com, company prospectuses, annual reports and or any other web resources, complete the tasks below.
1. Identify the main long-term sources of finance pre- and post-IPO.
2. Briefly state the reasons for going public and use of IPO proceeds for the chosen company.
3. Highlight the main risk factors affecting your chosen company’s future performance from the IPO prospectus.
4. Briefly explain the changes in ownership structure pre and post IPO.
5. What is the offer price? Do you think that this is a reasonable price compared with the book value per share? Why?
6. Compare offer price with the share’s closing price on the first trading day and calculate underpricing (raw and market adjusted returns). What are the main interpretations of underpricing phenomenon?
7. Compare the offer price with the current closing price.
8. If you are a long–term investor; what is your rate of return after 12 months, 24 months? show calculation where possible
Type of service: Academic Paper writing
Type of assignment: Essay
Number of Sources: 7
Academic level: Master’s
Paper Format: Harvard
Line spacing: Double
Language style: US English