Managing Finance

Running head: MANAGING FINANCE
Managing Finance
Name of the Student:
Name of the University:
Authors Note:

MANAGING FINANCE
1
Table of Contents
Introduction:...............................................................................................................................2
a. Analysing the IPOs that were indicated in Australia, while detecting the measure taken by
the management with the IPO capital:.......................................................................................2
b. Gauging the Change in cost of equity of the IPO after acquiring the required funds from
the share issue:...........................................................................................................................4
c. Disparagingly discussing about the implication of the under-pricing, while stating how
every industry is effected from it:..............................................................................................5
d. Scrutinizing the change in IPOs of Australia from 2007 to 2017:.........................................6
e. Linking returns of Australian index with the 5 years performance of the IPO:.....................7
f. Linking returns of Australian index with the 5 years performance of the IPO with dividends
....................................................................................................................................................8
Conclusion:..............................................................................................................................10
References:...............................................................................................................................11

MANAGING FINANCE
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Introduction:
The aim of the assessment is to identify relevant significance of initial public offering
that is conducted in Australia. Furthermore, relevant information is provided regarding the
three different initial public offerings that are conducted in Australia during financial years of
2013. Initial public offering is a relevant risky Endeavour, which is conducted by investors to
increase their overall look to the long run. One of the major initial public offering that is
conducted in Australia was JB hi fi, which relatively allowed the investors to gain more than
thousand percent in returns from its initial public offer. The surprise performance of the
initial public offerings of three companies are relatively conducted the assessment to identify
whether investors could gain higher returns while conducting investments during the
initiation stage.
a. Analysing the IPOs that were indicated in Australia, while detecting the measure
taken by the management with the IPO capital:
Compa
ny
Name
Industr
y
Date
of
IPO
Amount
intended to
raise
Amount
actually
raised The purpose of the funds
Meridia
n
Energy Utilities
Dec-
13 1129.0 $1129m
The organization needs
access to capital markets
and
commercial independence
in the form of greater
external
oversight and transparency,
increasing the incentive for
improved performance.
Ozforex
Diversi
fied
financia
l
Jun-
13 439.4 $439.4m
Paying dividend to the
existing share holder and
increasing capital
management flexibility
Virtus
Health
Healthc
are
Equipm
ent
Oct-
13 346.5 $346.5m
Funds to repay, in part,
existing debts of Virtus’
business and additional
financial flexibility to

MANAGING FINANCE
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pursue the growth
opportunities
Compa
ny Industry
Date
of
IPO
Amount
Raised
Offer
price
Closing price on
first day of
trading
Return on first
day of trading
Meridia
n
Energy Utilities
Oct-
13 $1129m 1.8 0.872 -51.56%
Ozforex
Diversified
financial
Oct-
13
$439.4
m 2 2.56 28.00%
Virtus
Health
Healthcare
Equipment
Jun-
13
$346.5
m 5.68 6.28 10.56%
The details of the initial public offering of Meridian energy are a relatively conducted
in the above table, which is used for identifying the relevant information about the share
issue. The company intended generate overall 1,129 million from the share issue, where it
provided offer price of $1.18 (Asx.com.au, 2019). However, during the first day of trade the
overall value of the share price fell by -51.56%, which indicated that the closing price for the
share during the first day of trade was 0.872. The company initiated the public offering on
October 2013, as it required the relevant funds to support its overall operations. Moreover,
the organization gathered the relevant capital from the equity market to support its
commercial independency, while increasing the external oversight and transparency in their
performance. The main aim of the organization was to boost their financial capital
and improve their performance.
The second initial public offering that is analyzed is Ozforex, which is situated in
diversified financial industry. The management aimed to acquire 439.4 million. From the
relevant share issue where the total offer price of the shares was at the levels of $2.The first
day closing price of was relatively at the levels of $2.56, which is 28% higher than the initial
offer price that was made by the organization (Asx.com.au, 2019). The company initiated the