公司理财(双语)9Issue Securities.ppt

1、,Chapter 16,Principles of Corporate Finance Ninth Edition,How Corporations Issue Securities,Topics Covered,Venture Capital The Initial Public Offering Other New-Issue Procedures Security Sales by Public Companies Rights Issue Private Placements and Public Issues,Venture Capital,Venture Capital Money

2、 invested to finance a new firm,Venture Capital,Private financing for relatively new businesses in exchange for equity The company should have an “exit” strategy Sell the company VC benefits from proceeds from sale Take the company public VC benefits from IPO Many VC firms are formed from a group of

3、 investors that pool capital and then have partners in the firm decide which companies will receive financing Some large corporations have a VC division,15-4,Venture Capital,Venture Capital,U.S. Venture Capital Investments,Motives For An IPO,Percent of CFOs who strongly agree with the reason for an

4、IPO,Initial Offering,Initial Public Offering (IPO) - First offering of stock to the general public. Underwriter - Firm that buys an issue of securities from a company and resells it to the public. Prospectus - Formal summary that provides information on an issue of securities. Spread - Difference be

5、tween public offer price and price paid by underwriter. Underpricing - Issuing securities at an offering price set below the true value of the security.,Selling Securities to the Public,Management must obtain permission from the Board of Directors Firm must file a registration statement with the SEC

6、 The SEC examines the registration during a 20-day waiting period A preliminary prospectus, called a red herring, is distributed during the waiting period If there are problems, the company is allowed to amend the registration and the waiting period starts over Securities may not be sold during the

7、waiting period The price is determined on the effective date of the registration,15-10,墓碑式广告的例子,The Top Managing Underwriters,Underwriters,Services provided by underwriters Formulate method used to issue securities Price the securities Sell the securities Syndicate group of investment bankers that m

8、arket the securities and share the risk associated with selling the issue Spread difference between what the syndicate pays the company and what the security sells for initially in the market,15-13,Average Initial IPO Returns,Initial Offering,Average Expenses on 1767 IPOs from 1990-1994,IPO Proceeds

9、,IPO Proceeds and First Day Returns,General Cash Offers,Seasoned Offering - Sale of securities by a firm that is already publicly traded. General Cash Offer - Sale of securities open to all investors by an already public company. Shelf Registration - A procedure that allows firms to file one registr

10、ation statement for several issues of the same security. Private Placement - Sale of securities to a limited number of investors without a public offering.,Underwriting Spreads (2006),Rights Issue,Rights Issue - Issue of securities offered only to current stockholders. Example BNP Paribas Bank needs

11、 to raise 5.50 billion of new equity. The market price is 77.40/sh. Lafarge decides to raise additional funds via a 1 for 10 rights offer at 65.40 per share. If we assume 100% subscription, what is the value of each right?,Rights Issue,Current Market Value = 10 x 77.40 = 774.00 Total Shares = 10 + 1

12、 = 11 Amount of funds = 774 + 65.40 = 839.40 New Share Price = (839.40) / 11 = 76.31 Value of a Right = 76.31 65.40 = 10.91,Example - BNP Paribas Bank needs to raise 5.50 billion of new equity. The market price is 77.40/sh. Lafarge decides to raise additional funds via a 1 for 10 rights offer at 65.

13、40 per share. If we assume 100% subscription, what is the value of each right?,Rights Issue,Slightly More Difficult Example Lafarge Corp needs to raise 1.28billion of new equity. The market price is 60/sh. Lafarge decides to raise additional funds via a 4 for 17 rights offer at 41 per share. If we assume 100% subscription, what is the value of each right?,Rights Issue,Current Market Value = 17 x 60 = 1,020 Total Shares = 17 + 4 = 21 Amount of funds = 1,020 + (4x41) = 1,184 New Share Price = (1,184) / 21 = 56.38 Value of a Right = 56.38 41 = 15.38,Example - Lafarge Corp ne