Managing Finance

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

MANAGING FINANCE
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Table of Contents
Introduction:...............................................................................................................................2
a. IPO activity of the three selected companies, while stating how the manger used the
acquired funds:...........................................................................................................................2
b. Change in cost of equity of the IPO after acquiring the required funds:...............................4
c. Critically discussing about the implication of the under-pricing and how it changes from
industry to industry:...................................................................................................................5
d. Australian IPO activity analysis from 2007 to 2017 and comparing the results with the
Australian economy:..................................................................................................................6
e. Comparing the 5 years performance of the IPO with Australian index:................................7
f. Comparing the 5 years performance of the IPO with dividends vs Australian index:...........8
Conclusion:................................................................................................................................9
References and Bibliography:..................................................................................................10

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Introduction:
Australian IPOs has been one of the major contributors to the funds of many
organisations, where national companies have acquired funding to support their operations
and expansion plans. One of the major IPO of that conducted in Australia was JH-HI-FI,
where the organisation overall share increased from $2.17 to $25.60. This mainly states that
the Australian economy is considered to be one of the major financial hubs, which allow
small companies to gather the required funding for their operations. The assessment directly
evaluates the IPO activities of Australia and analyse three different IPOs, which was
conducted during 2013. Moreover, the performance of the IPOs analysed for the asset is
compared with the Australian index to determine the level of gains that was provided to the
investors.
a. IPO activity of the three selected companies, while stating how the manger used the
acquired funds:

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The initial public offering conducted by three specific Australian companies is mainly
depicted in the above table, which helps in analyzing the different use of funds that was
conducted by the managements. Meridian Energy IPO was initiated in October 2013, where
the company in 2 days 1,129 million from the equity market within offer price of $1.8.
Moreover, the organization was able to acquire the whole funding for which the management
initiated the IPO. However, the first day closing price for the organization was at the levels of
0.872 from the initial $1.8, which indicated that the stock lost -51.56% in a single day’s trade.
Moreover, the management initiated the public offering for increasing their access to the
capital market and commercial Independence from the external debt oversight. However,
there was no intention for reducing the debt of the organization (Asx.com.au, 2019).
The second public offering that has been analyzed is from Pact Group, where the
management initiated the IPO during December of 2013. The organization aimed to raise