24 July 2015
on course website
Going public is an important area of investment banking. The aim of this course is to provide students with insights into the complexities of the listing decision of companies. We analyze why companies go public. An initial public offering (IPO) represents a major milestone in the lifecycle of a firm. By issuing shares of stock to a large number of investors the firm secures an infusion of new capital and broadens its long-term investor base through future capital increases during seasoned offerings. We analyze the role of investment bankers, venture capitalists and investor relations in successfully launching a new IPO.
The aim of this course is to provide students with insights into the complexities of the listing decision of companies. Why do companies go public? Going public represents a major milestone in the lifecycle of a firm. By issuing shares of stock to a large number of investors the firm secures an infusion of new capital and broadens its long-term investor base through future capital increases during seasoned offerings.
However, there are substantial direct and indirect costs at the moment of the initial public offering (IPO). An IPO is a transition process through which a private company becomes public by offering part of its equity to public shareholders. We analyze the motives of companies to pursue a public listing at a stock exchange. What are advantages and disadvantages of going from a private to a public company? At what stock exchange to list? What is the value of a listing?
Next we zoom in on the valuation aspects of the company. How can we put a fundamental value of the shares which are going to be offered for the first time to the public? We analyze different valuation models to get more grip on the valuation process. We also analyze different regulatory and institutional aspects of the going public process. What documents a company has to file? When can the company communicate with the market and when not? What are different contracts with underwriters?
Finally, we analyze the first trading days. How does the stock price evolve during the first trading days? Do we see price run-ups? What communication strategy does the company need to develop? What investor base to target?
The course will be given by Peter-Jan Engelen (Utrecht University) who has extensive experience in research and consulting on IPOs, corporate finance and corporate governance issues. The classes will be set up as a seminar and will employ a variety of teaching methods including cases, discussions, in-class exercises, current events discussions, student presentations, guest lectures and company visits. The Harvard Business School cases are selected to complement the topic of each class.
The course is meant for students and practitioners with great interest in learning why and how companies go public. Students’ active participation in class discussions and other assignments is necessary for the success of the course. In short, interactive and motivated individuals with great interest in learning about entrepreneurial finance and with mindsets driven by international viewpoints will be able to best utilize the course.
By the end of the course, students should:
• Have a broad understanding of the IPO process.
• Understand and analyze the different of going public.
• Be able to conduct a basic valuation of a company going public.
• Understand the various regulatory and risk aspects of the IPO process.
• Understand the first day stock price behavior.
• Gain insight into investor communication issues
• Work successfully within groups to complete assignments and projects.
Certificate of Attendance
EUR 595: Course + course materials + housing
EUR 395: Course + course materials
In the course fee a Coursepack by Harvard Business Publishing in NOT included. Students attending the course are required to buy the study material online (price aprox. $29/€ 20). More information will be sent to students before the start of the course.
Utrecht Summer School doesn't offer scholarships for this course.Register for this course
on course website