Advance Corporate Finance Case Study 2022

Running Head: Advance Corporate Finance
0
Advance
Corporate Finance
(Student Name)

Advance Corporate Finance 1
Table of Contents
Initial Public Offer (IPO)...........................................................................................................2
The motivation for Initial Public Offering (IPO)...................................................................2
Price Setting Process..............................................................................................................2
Underwriting Arrangement........................................................................................................2
Capital Structure before and after the IPO.................................................................................3
Post Initial Public Offering Capital Structure............................................................................3
Offer Price..................................................................................................................................4
Performance of IPO....................................................................................................................4
Conclusion..................................................................................................................................5
References..................................................................................................................................6

Advance Corporate Finance 2
Initial Public Offer (IPO)
People Infrastructure Company headquartered at Australia was listed in 2017 on ASX. They
deal and provides solution related with workforce management. They also provide solutions
in Information Technology, Community Care, general Staffing and Specialist Services. It was
established way back in 2006 and has presence across Australia and New Zealand.
Initial Public Offering is an offering by a corporation by the issuance of its shares to the
general public in the stock market.
The motivation for Initial Public Offering (IPO)
It is one of the options of raising funds from public. It is one of the most popular ways of
raising funds across the world. Some of them are mentioned herein:
A. Access to Risk Capital
This method is one of the best way of raising capital. Sometimes private investors might
not value the company at fair valuation, on the hand public might give them a fair
valuation.
B. Increased Public Image
Post listing the company gets more recognition. More banks will come up and lend to
these companies as the image goes up (Che-Yahya, Abdul-Rahim and Rashid, 2018).
C. Stock Options
The stock option for a listed company can be done very easily.
D. Acquisition and Mergers
Post listing it gets easier to facilitate acquisition and mergers because the valuation gets
public (Ritz, Brewer and Neumann, 2016).
Price Setting Process
There are basically two ways of setting the price in Initial Public Offering namely Fixed Price
Issue and Book Building Issue.