Extra Credit IPO

Extra Credit IPO - others. The first day return is: First...

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Extra Credit – IPOs 1. Go to the company assignment list. Look at the row number for your name and company. Remember this number. 2. Go to the IPO list posted on blackboard with these extra credit assignments. Go to the row that matches the number you obtained in #1. Make a note of all of the information in this row. 3. Find a brief description of your company, and summarize this in a couple of sentences. 4. Calculate the first day return for your company. You will be given the offer price; you will need to look up the close price on the first day of trading. There are many sources of historical stock prices – yahoo, google, wsj.com, and many
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Unformatted text preview: others. The first day return is: First day close price - offer price First day return = Offer price 5. Read the section on IPO returns posted on blackboard. In particular, see section 16.3 about first day returns. Compare your calculated first day return to the average first day return for the time period of your IPO. Is your return higher or lower? Why do you think that might be? (Hint: what was the economic condition at the time of your companys IPO?) First Day IPO returns (Source: Renaissance Capital): Year First Day return 2010 10% 2009 7% 2008 3% 2007 13% 2006 11% 2005 11% 2004 11% 2003 13% 2002 8% 2001 14% 2000 56% 1999 69%...
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