Managing Finance

Running head: MANAGING FINANCE
Managing Finance
Name of the student:
Name of the university:
Author Note:

1MANAGING FINANCE
Table of Contents
Introduction:...............................................................................................................................2
Discussion:.................................................................................................................................3
Answer of Question (a)..........................................................................................................3
Answer of Question (b)..........................................................................................................3
Answer to Question (c)..........................................................................................................4
Answer to Question (d)..........................................................................................................5
Answer to Question (e)..........................................................................................................6
Answer to Question (f)...........................................................................................................8
Conclusion..................................................................................................................................9

2MANAGING FINANCE
Introduction:
The aim of the assignment deals with the three chosen companies listed in the
Australian Stock Exchange which are the Pact Group, Virtus Health and Meridien Energy.
The financial performance of all the three stated companies has been estimated along with the
result in the share price of the commerce through initial public offering. The regular deviation
in the share price of all selected three companies has been disclosed in the conducted study.
The advantages and disadvantages in the strategy of overpricing and under pricing of the
company have been depicted in the conducted research.

3MANAGING FINANCE
Discussion:
Answer of Question (a)
Detailed analysis of Pact Group, Virtus Health and Meridien Energy has been
conducted in the study in order to find out the first day of trading. There are certain
advantages of the company through the process of issuing the initial public offering in order
to raise capital. This will further help the company in order to reach large number of
shareholders in the market. This further helps the business of the company in need to further
enlarge the current business by effectively utilizing the total amount elevated by the business.
From the above evaluation it can be said that in case of Pact group on the first day of
trading, the company incurred a loss of about 4%. But in case of the Virtus Health and
Meridian Energy, both the company has incurred profit of about 10% and 6% during the
implication of the IPO of the three stocks (Matthew 2017). Out of the three chosen
companies, Virtus Health and Meridian energy is showing the positive return on the first day
of trading where Virtus health was at top notch about 10%. It also signifies that the healthcare
equipment is ahead among the other two materials and utilizes industry in the first day of
trading.
Answer of Question (b)
In order to increase funds, initial public offering is a very costly way to raise the long
term finance for corporation. The company tries to make offer of securities to the public by
adopting the strategy of the initial public offering. There are certain norms which are related
to the Australian Stock Exchange in order to prepare the information’s based on