Managing Finance Report 2022

Running head: MANAGING FINANCES
Managing Finances
Name of the Student
Name of the University
Author’s Note

MANAGING FINANCE1
Executive Summary
This current report has focused on the identification of the initial public offering on the
Australian Securities Exchange of the period of eight years. In this study, BHP Billiton has been
included that points out the IPO is one of the costliest way of raising the long term finances that
would assist the company in their long run business. The study also includes the selected IPO
that mainly extents in the under-pricing of the shares along with comparison of issued price and
closing price. It also includes the arguments against the data that has been gather in the overall
period of the company.

MANAGING FINANCE2
Table of Contents
Introduction......................................................................................................................................3
Identifying the Initial Public Offerings and discussing the reasons why the IPO has been
undertaken........................................................................................................................................3
Critically evaluating the IPO that is a costly way of raising long term finance for the corporations
.........................................................................................................................................................4
Verifying the extent of under-pricing by comparing the issue price and closing share price of the
first day of trading...........................................................................................................................6
Evaluating the data that has been gathered by its share performances in 3 to 5 years that is listed
on ASX............................................................................................................................................7
Analysing the dividend pay-out policy that has been started from the date of IPO and changes
any strategy that has been analysed over the period of time...........................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

MANAGING FINANCE3
Introduction
Managing the finances in an organisation is vital for an organisation as it includes all
kind of finances that helps the company in achieving their targets in a certain financial year. The
shares that are associated with the company includes the price of the shares that act as working
capital for the company. In this study, Australian Securities Exchange (ASX) has listed their
companies from which BHP Billiton has been taken into consideration for which the cost of
issuing the shares has been included in the overall includes of the investors of the company. The
process of identification of the initial public offering includes the effective advantage that helps
the company in achieving the goals and objectives in their normal course of business.
Identifying the Initial Public Offerings and discussing the reasons why the IPO has been
undertaken
Initial public offering is the certain type of public offering that help the company in
raising their long term finances for the company and helps in running smoothly of the total
amount of working capital. The public shares are issued by allowing the company to raise the
financial capital from the public investors (Boone, Floros & Johnson, 2016). It also includes the
transition that from a private limited company to a public limited company in which the
shareholders of the company generally realise the gains that includes in the share premium for
the private investors that are private in nature. The movement of the stock is one of the most
difficult aspects that helps the stock to create the platform along with actionable information for
promoting faster as well as smarter trade. The company that has been chosen is BHP Billiton that
has issued an IPO in the year 2013 for better gathering of capital for the company. The company
has issued the IPO in that particular year as the company has been running low in their capital
and for this reason the company has issued IPO to raise the capital that is working in nature.