Finance

FIN 302: Intermediate Corporate Finance

Winter 2017

Instructor: Sungjoung Kwon

Extra credit assignment #1

(3 pts to your final grade)

Assignment: Choose a firm that went public (listed on NYSE, NASDAQ, AMEX, etc.) and analyze the

following. Choose a firm that went public before 2012.

NO! YOU CANNOT PICK FACEBOOK!

Imagine that your audience is your boss, who is a finance person. The memo can be no longer than two

pages. Within that limit, you should include the following:

1. Firm name & IPO date?

2. VC-backed: Was the firm backed by venture capitalists? If so, what is the VC firm name? How many VCs were there prior to IPO?

3. Who was the lead underwriter (investment bank)? How many investment banks were involved?

4. IPO proceeds: How much money did the firm raise in IPO?

5. Offer price?

6. The closing market price of the first trading day?

7. Initial return?

8. Lockup agreement: Was there any lockup provision? If so, for how long?

9. Stock price at the IPO, at lockup expiration date, after 1 year, after 2 years, after 3 years?

10. Did the firm make any acquisitions before going public? If so, target name (acquired company’s name), acquisition date, acquisition purpose, transaction amount ($), payment method?

11. Any surprising/interesting facts? Why?

12. Source/reference?

The memo will be due March 6th (Monday) at the beginning of class. The report should be submitted

in hardcopy. This assignment should be done individually without any help from the instructor. Do

not ask questions such as “I cannot find the information on xxx, could you help?”. One of the objectives

of this assignment is to let you get familiar with real-world institutional details. NO LATE

SUBMISSION WILL BE ACCEPTED.

Appendix

You can find IPO prospectus from EDGAR: https://www.sec.gov/edgar/searchedgar/companysearch.html

1) Search company name 2) Choose the appropriate CIK (central index key) 3) Search “S-1” in filing type 4) Look at the most recent filing

You can find stock price information from Yahoo Finance or Google Finance.

You can also rely on news articles to answer the questions. However, you have to provide appropriate

references.