This assignment will require you to obtain relevant information regarding IPOs. Please scan the images to supplement your findings. No credit will be given if you do not provide the supporting...

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This assignment will require you to obtain relevant information regarding IPOs. Please scan the images to supplement your findings. No credit will be given if you do not provide the supporting evidence. For Questions 6 and 9, you must also show your calculations for credit. Late submissions will not be accepted so please plan accordingly. Important Websites/Information: 1. IPO Calendar (provided by Nasdaq): https://www.nasdaq.com/market-activity/ipos This link contains basic information regarding IPOs by companies (includes past and upcoming IPOs) 2. SEC filings: https://www.sec.gov/edgar/searchedgar/companysearch.html Enter the company name or ticker/CIK and get access to all company filings. We are interested in Form S-1 (which is the Registration Statement), Form S-1/A (the Amended Registration Statement, and Form 424B4 or 424B3 or 424B2 (contains information regarding the securities issued). 3. To quickly access SEC filings for an IPO company, you can go to IPO calendar provided by Nasdaq (see link in #1 above), select your IPO company, click on the company name, click on “Financials & Filings”, scroll down to Company Filings, click on “Link” to go to that particular SEO filing. 4. Yahoo! Finance website: https://finance.yahoo.com/ contains information about post-issue price and stock data. 5. The SEC’s Office of Investor Education and Advocacy has issued an Investor Bulletin to provide investors with information they should consider when investing in the shares of a new public company. You will find useful beginner information about IPOs here: https://www.sec.gov/investor/alerts/ipo-investorbulletin.pdf 6. Calculating the direct costs of an IPO After a company’s IPO registration statement has been declared effective, the company will typically file a final prospectus—usually identified as a 424B3 or 424B4 filing in the EDGAR database. The final prospectus generally includes information related to the final offering price. Go to SEC filings: https://www.sec.gov/edgar/searchedgar/companysearch.html. Enter the name of your company under Company Name and click on Search. Now click on Form 424B4 and open the html document. Alternatively, you can click on the company name under IPO Calendar in Nasdaq.com website and then click on “Financials & Filings” to get the direct link to Form 424B4. a. The underwriting discounts and commissions per share represents the direct costs of an IPO to the company in dollars. b. You can calculate the underwriting discounts and commissions per share in percentages as follows: Underwriting discounts and commissions per share divided by Price to public. 7. Calculating the indirect costs of an IPO The indirect costs of an IPO to the company is the money left on the table, defined as the difference between the adjusted closing price on the first day of trading and the offer price, multiplied by the number of shares sold. This is the first-day profit received by investors who were allocated shares at the offer price. It represents a wealth transfer from the shareholders of the issuing firm to these investors. Money left on the table = Indirect costs of an IPO = (Adjusted Closing price on the first day of trading – Offer Price) * number of shares sold FIN 5130 Mini-case 2 IPO Real World Application Case Study Answer the following questions: 3 points 1. What is an Initial Public Offering (IPO)? How does it differ from a Seasoned Equity offering (SEO)? 5 points 2. Say, you are interested in an IPO. How can you invest in an IPO? You will find the answer to this question here: https://www.sec.gov/investor/alerts/ipo-investorbulletin.pdf 2 points 3. Select a company that has issued an IPO from https://www.nasdaq.com/market-activity/ipos a. Enter the name of the company you selected on the Discussion Board under Mini-case 2. You need to select an IPO company that has not already been selected and posted on the Discussion Board by any other colleague before you. If you pick an already selected company, then you will get a grade of zero for this assignment. Also, do not select the company – Oportun Financial Corp because we are using that company as an example under Discussion 4 Problem Set. 5 points 4. Provide a brief description of the company in a couple of lines in your own words. 5 points 5. What is the Offer Price, number of shares offered, and the IPO date? You will get this information for your company from https://www.nasdaq.com/market-activity/ipos 10 points 6. What are the direct costs of an IPO to the company? Obtain your answer both in dollars and percentages. 5 points 7. From Form 424B4, list all the underwriters and show how many shares each underwriter has decided to sell in an IPO. 5 points 8. Go to Yahoo! Finance website: https://finance.yahoo.com/ . Enter the company’s ticker and then go to Historical Data. What is the adjusted Closing Price on the company’s first day of trading? 10 points 9. What are the indirect costs of an IPO to the company?