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Corporate Finance Assignment

Evaluate the objectives, pricing, and outcomes of an Australian IPO completed between January 2016 and December 2018.

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Added on  2022-11-07

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This report discusses the process of raising IPO and different challenges associated with it. It evaluates Wattle health Australia ltd. IPO objectives, pricing and outcomes. It analyzes capital structure before and after IPO, performance of the IPO, IPO success and pre-IPO.

Corporate Finance Assignment

Evaluate the objectives, pricing, and outcomes of an Australian IPO completed between January 2016 and December 2018.

   Added on 2022-11-07

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Running Head: CORPORATE FINANCE ASSIGNMENT
Corporate Finance Assignment
Name of the Student:
Name of the University:
Author note:
Corporate Finance Assignment_1
1
CORPORATE FINANCE ASSIGNMENT
Executive summary
This report is too discussed about the process of raising IPO and different challenges associated
with it. Then one Australian company IPO that is Wattle health Australia ltd. has been evaluated
to show its objectives, pricing and outcomes. Next it is described about motivation for IPO, the
price setting process and underwriting arrangement. Next it is analyzed about capital structure
before and after IPO, performance of the IPO, IPO success and about pre-IPO.
Corporate Finance Assignment_2
2
CORPORATE FINANCE ASSIGNMENT
Table of Contents
Introduction......................................................................................................................................3
Motivation for IPO..........................................................................................................................3
Price setting process........................................................................................................................4
Underwriting....................................................................................................................................5
Capital structure before IPO............................................................................................................5
Capital structure after IPO...............................................................................................................6
Offer price........................................................................................................................................7
Performance of the IPO...................................................................................................................8
IPO success......................................................................................................................................9
Pre- IPO...........................................................................................................................................9
Conclusion.......................................................................................................................................9
Reference list.................................................................................................................................11
Corporate Finance Assignment_3
3
CORPORATE FINANCE ASSIGNMENT
Introduction
Initial public offering or IPO is the process of offering shares to the general public by the
private entities. It is a type of borrowing for the company to raise fund from the public.
Companies use IPO to raise money from the public to re-invest in the business which will help
them to grow. When a company wants to grow or is at a matured stage it tries to take the benefit
of public deposits. To initiate IPO in Australia Company must sent a prospectus to the
Australian securities and investment security containing information about the company.
Investing in IPO comes with different risks as the company offer shares at a discounted rate or
by adding value, where the value of the shares may fall or rise. WHA is an Australian based
company provides and develop consumer health products. They are mainly focused on infant
dairy products. Wattle health Australia ltd. main objective is to make capital growth for medium
and long term by initiating IPO (Aggarwal et al., 2016). Their business model is built to achieve
sales at both domestic and commercial. There primary purpose of taking fund is to support the
company expenditures, getting listed in ASX market, pay off all its credits and provide working
capital.
Motivation for IPO
In this tough business economy it is hard for the Wattle health Australia ltd. to get
investment from the public. People have money to invest but they want a good return on their
investment. So in order to get investment from public companies has to apply some basic plan to
motivate public are as follows:
Demonstrating the profit potential – The best way to attract public for investment is to
show them the possible return on investment.
Corporate Finance Assignment_4

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