wsj-2-chapter5 corp gov

wsj-2-chapter5 corp gov - Prada Samsonite Huaneng...

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Kevin Flinchbaugh Corporate Governance/ Chapter 5 May 23, 2011 (paper edition) Hong Kong IPOs Back in Fashion By Prudence Ho and Yvonne Lee The other day I read an article from the Wall Street Journal, which was called Hong Kong IPOs Back in Fashion , was definitely related to Chapter 5 out of the Corporate Governance book where it talked about IPOs. As I learned from reading the book, issuing stock requires regulatory approval such as the Securities and Exchange Commission. It is necessary to submit information about the company which is then made available to the public, so investors can make decisions about the condition of the company and about buying the issue. Generally when a firm offers stock to the public for the first time they are young, small, and unknown to the investors. In the case of the article, the companies issuing stock for the first time are known giants such as;
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Unformatted text preview: Prada, Samsonite, Huaneng Renewables, MGM China Holdings, and Resourcehouse. Because these companies are large and have been established already, I do not see a reason why they could not succeed. The book states a problem with IPOs being that it is a hard transition for small companies to transition with the new capital; however these businesses have already made the transition. With a hard global economy there isn’t a huge demand from investors, which if there were it may lower the standards like the mid to late 1990’s. But because these companies are already established and the standards of investors should be high, I have confidence in them reach their goals of Prada seeking more than $9 billion, Samsonite $1 billion, Huaneng Renewables $988.2 million, MGM China Holdings up to $1.5 billion, and Resoucehouse to raise up to 3.6 billion....
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  • Spring '11
  • Baker
  • Corporation, Economy of the People's Republic of China, U.S. Securities and Exchange Commission, MGM China Holdings

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