Managing Finance: Analysis of Three Organizations and their IPO Performance

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

MANAGING FINANCE
Table of Contents
Introduction:....................................................................................................................................2
Discussion:.......................................................................................................................................3
Answer to (a)...............................................................................................................................3
Answer to (b)...............................................................................................................................4
Answer to (c)...............................................................................................................................4
Answer to (d)...............................................................................................................................6
Answer to (e)...............................................................................................................................6
Answer to (f)................................................................................................................................8
Conclusion.......................................................................................................................................9
References:....................................................................................................................................10

MANAGING FINANCE
Introduction:
The assignment intends to analyze the performance of three chosen organizations
including Virtus Health, Meridien Energy and Virtus Health and they are enlisted in ASX. The
evaluation of the above-mentioned three organizations has been made along with impact on
share price depending on initial public offering. This assignment deals with stock movements of
the organizations in ASX, which are analyzed in details in the study. Finally, the paper has shed
light on assessing the impact of over-pricing and under-pricing of the policy related to initial
public offering of all three organizations.

MANAGING FINANCE
Discussion:
Answer to (a)
As identified above, the companies chosen include Virtus Health, Meridien Energy and
Dick Smith. The key merits of issuing initial public offering by the company are to obtain capital
quickly along with formation of increased customer base (Wang & Sarkis, 2017). This assists the
company in diversifying its existing business operations through sound use of the overall raised
capital from the market.
It could be observed from the above table that Dick Smith has incurred a loss of about
2% in the first day of training. As per the evaluation of the above table, for Meridian Energy and
Virtus Health, they have generated profit margin of 6% and 10% respectively on the initial
trading day. After evaluating the chart, it is also observed that both Meridian Energy and Virtus
Health would be able to reap the benefits from initial public offering, since the market return is
observed to be positive on the first trading day. Hence it can be said that the business strategy in
terms of trading which is adopted by Meridian Energy and Virtus Health is far more effective
rather than the business strategy of Dick Smith. In the long run as per the share price analysis of
the three companies, Meridien Energy is literally going to flourish in case of the business
expansion.