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Explaining Underpricing in 2018 IPOs of Aston Martin and Mind Gym

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Added on  2023-04-21

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This article explains the underpricing structure in the 2018 IPOs of Aston Martin and Mind Gym, and provides information on the share prices and stock performance. It also discusses the IPO market in the UK.

Explaining Underpricing in 2018 IPOs of Aston Martin and Mind Gym

   Added on 2023-04-21

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Running head: CORPORATE FINANCE
Corporate Finance
Name of the Student:
Name of the University:
Author’s Note:
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Explaining Underpricing in 2018 IPOs of Aston Martin and Mind Gym_1
1CORPORATE FINANCE
Table of Contents
Explaining why underpricing are conducted by providing adequate explanation regarding the
analysis of the 2018 IPOs of Aston Martin and Mind Gym:...........................................................2
Providing information regarding the prices of the two companies evolved during the issue
period:..............................................................................................................................................3
Comparing the stock performance with index and depicting about IPO market in UK:.................4
References and Bibliography:..........................................................................................................6
Explaining Underpricing in 2018 IPOs of Aston Martin and Mind Gym_2
2CORPORATE FINANCE
Explaining why underpricing are conducted by providing adequate explanation regarding
the analysis of the 2018 IPOs of Aston Martin and Mind Gym:
The underpricing structure is mainly used by the organization for completing the share
issues successfully, as it motivates the investors to buy shares of the organization during the
issue. The underpricing method has certain significance, which allows the organization to gather
the required level of capital to supports its expansion and other plans. The occurrence of
underpricing is essential for the organizations to successfully complete their IPO without any
kind of halt and problems. The initial public offering is mainly conducted with the help of a
merchant banker, who orchestrates the whole IPO of an organization, which ensures the
completion of the share transfer. The underpricing of the shares mainly allows the merchant
banker to adequately attract investors who will be keen on investing for a long term in the
company.
Moreover, the analysis of Aston Martin IPO directly portrays the information regarding
the IPO offering, which was placed between £18.50 to £20.00 a share. However, the start of the
IPO resulted in a decline of the share to £17.75 from an opening price of £19.00
(Uk.finance.yahoo.com, 2019). Moreover, the IPO of Mind Gym provides relevant information
regarding the share price that was listed for the investors. In addition, the IPO share price for
Mind Gym was at 146.00 pence per share, which has changed due to the alterations in the
demand. The overall share price of the organization on 28 June 2018 has mainly changed from
170 pence opening price to a closing price of 177.50 pence.
Explaining Underpricing in 2018 IPOs of Aston Martin and Mind Gym_3

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