Managing Finance: IPO Evaluation of Caeneus Minerals Limited and Calima Energy Limited

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

MANAGING FINANCE1
Executive Summary
The two listed companies which are the Caeneus minerals limited and Calima Energy
Limited. Both the companies are listed in the ASX. In this assignment both the IPO of the
two companies are evaluated in such a manner that the performance of the share price is
noted accordingly. The reason behind the movement in such share price of the firm has been
depicted and discussed accordingly in this conducted study.

MANAGING FINANCE2
Table of Contents
Introduction:...............................................................................................................................2
In Response to Question 1..........................................................................................................2
In Response to Question 2..........................................................................................................4
In Response to Question 3..........................................................................................................5
In Response to Question 4..........................................................................................................6
In Response to Question 5..........................................................................................................7
Conclusion..................................................................................................................................8
References..................................................................................................................................9

MANAGING FINANCE3
Introduction:
The aim of the assignment deals with the initial public offering on the two ASX listed
companies which are the Caeneus minerals limited and Calima Energy Limited. Caeneus
Minerals limited is an Australian based mineral exploration and Development Company
which is established for the purpose of acquiring the highest portfolio or the development
project which is further implemented in the country of United States and Australia. On the
other hand Calima energy is a publicly listed energy company which is the ASX. The main
activity of the Calima is to invest in the gas and oil corporation assets. Apart from the oil and
gas prospective the company has also agreement to some of the farm. The farm agreement
further provides Calima the right to acquire the working interest till 55% in the operatorship
of the project and Montney Project.
In Response to Question 1
When a company is publicly listed in the market then it may sale the stocks of the
company to the general public. The company offering its shares to the public is referred to as
the issuer which is performed with the help of the investment banks. After the IPO, the shares
of the company is traded in the open market (Damodaran, 2016). This shares are further
traded in the secondary market where the shares are purchased and sold by the creditors. The
IPO of the Calima energy limited is commenced at the July 2006 and the reason behind
issuing IPO is to increase the capital through the process of the various financial factors. The
company can go public by trading in the open market and further attract the potential
shareholders in that case. The chosen ASX listed company which is the Caeneus Minerals
limited where the date of IPO is 2000 when the first share is issued by the company (Fracassi,
2016).