P. Morgan and Goldman, Sachs & Co as the underwriters, 845 million active users reported, and this Consolidated Balance Sheet: As of December 31, 2011 Actual Pro-Forma (1) Pro Forma As Adjusted (2)(3) (in millions) Consolidated Balance Sheet Data: Cash, cash equivalents, and marketable securities 3,908 $3,908 Working capital 3,705 4,034 Property and equipment, net 1,475 1,475 Total assets 6,331 6,660 Total liabilities 1,432 1,432 Additional paid-in capital 2,684 4,267 Retained earnings 1,606 Total stockholders' equity 4,899 5,228 (Facebook, Inc
, 2013) Facebook is state-of-the-art, famous and volatile. Its founders saw and used a very profitable and popular global market with huge financial returns (Forbes.com, LLC, 2013)
com, LLC, 2013). Despite its worldwide successes, Facebook's IPO was full of mistakes, disappointments and possible deceit that caused a number of lawsuits (Tsukayama, 2012)
It is a publicly traded corporation on the Nasdaq 100 and AMEX and its current stock price is $46.26 as of November 22, 2013 at 7:53PM EST (Yahoo, Inc
It is a publicly traded corporation on the Nasdaq 100 and AMEX and its current stock price is $46.26 as of November 22, 2013 at 7:53PM EST (Yahoo, Inc
By choosing online auctions, Google and Morningstar gave up the favorable media coverage that traditional IPOs typically receive and that would give traditional large investors more confidence about investing in the IPOs (Clinton, 2011). Google and Morningstar also chose more financial risk than the traditional IPO would give them: a traditional IPO is more established and accepted by traditionally large investors like investment banks and wealthy Wall Street investors, so there is less financial risk in the traditional IPO than in an online auction (Carter Chalk, 2005)
com, LLC, 2013). Although Google and Morningstar avoided those traditional IPO problems and costs, they still had to pay the lower fees and costs of an online auction IPO, still had to hire a bank, set of number of shares, set the price per share and pay fees to the SEC (Clinton, 2011)
40/$1 million and SEC assessments on security futures transactions of $0.0042 per round turn (Cody & Traderstatus
However, the application of the DCF methodology itself raises certain unsettled issues, including whether the same discount rate should be used for valuing private companies as when valuing comparable public companies. Another threat is that the reliability of DCF methodology depends on the accuracy of cash flow projections and the use of appropriate risk measures (Koeplin & Sarin & Shapiro, 2000, p
On the contrary, the online auction process will enable AVG to enhance the ability for small investors to engage in the IPO process while lessening the conventional dominance of larger institutional investors and the underwriting investment bank. Similar to the Google online auction IPO, this model is likely to provide publicity for AVG, which is likely to generate the interest of small investors and other individuals who are usually less involved in an IPO (Hensel, 2005)
On balance, it appears that AVG would benefit most from the traditional IPO process rather than auction-based IPO (Clinton, 2011). First, a traditional IPO enjoys the support of traditional investment banks and other large, established Wall Street investors (and therefore less financial risk in that aspect), which Morningstar and Google forfeited by going the nontraditional auction-based IPO in order to enjoy the advantage of "democratically" reaching millions of small investors (Carter Chalk, 2005)
Given the company's hi-tech nature, aggressive and successful history and current prospects for continuing global expansion, it is likely to attract large institutional investors such as hedge funds and other top clients of large investment banks, in addition to small and even individual investors. On balance, it appears that AVG would benefit most from the traditional IPO process rather than auction-based IPO (Clinton, 2011)
40 per million dollars and assessment on security futures transactions of $0.0042 for each round turn transaction, effective May 25, 2013 (Cody & Traderstatus
1). The SEC then reviews the S-1 for accuracy and rules compliance and possibly directs revision of the form by the company (Kamlet, 1995)
By closing bell, the stock was valued at a $38.23, which many characterized as discouraging after the initial excitement (De la Merced, 2012)
Facebook, Inc. is so pervasive in modern society that it maintains 11 offices in the United States and approximately 25 global offices in such disparate places as Amsterdam, Buenos Aires and Singapore (Facebook, Inc
was chosen because of its notoriety and financial volatility. The company is one of the most modern sources of global communications, which clearly tapped into a highly lucrative and rapidly expanding market, with resulting high profitability, particularly commencing in 2009 and continuing (Forbes.com, LLC, 2013); nevertheless, its IPO was marked with missteps, investor disappointments and numerous lawsuits (Tsukayama, 2012)
Due to considerable excitement over the IPO, Facebook, Inc.'s valuation increased after its initial filing, from $28 to $35 per share ($77 billion to $96 billion) in early May 2012 to $34 to $38 per share (up to $104 billion) in mid-May 2012, with the underwriters settling on $38 per share by day of trading (Oran & Barr, 2012)
com, LLC, 2013). Simultaneously, the company's IPO was so disappointing in some respects that it was referred to as "The Facebook Flop" (Temple, 2012)
00 on May 22, $27.72 by June 1st and $27.10 by June 6th (Tobak, 2012)