公司理财(双语)9issuesecurities.ppt

Chapter 16 PrinciplesPrinciplesofofCorporateCorporateFinanceFinanceNinth EditionHow Corporations Issue Securities16-2Topics CoveredVenture CapitalThe Initial Public OfferingOther New-Issue ProceduresSecurity Sales by Public CompaniesRights IssuePrivate Placements and Public Issues16-3Venture CapitalVenture CapitalMoney invested to finance a new firm16-4Venture CapitalPrivate financing for relatively new businesses in exchange for equityThe company should have an“exit”strategySell the company VC benefits from proceeds from saleTake the company public VC benefits from IPOMany VC firms are formed from a group of investors that pool capital and then have partners in the firm decide which companies will receive financingSome large corporations have a VC division15-416-5Venture Capital16-6Venture Capital16-7U.S.Venture Capital Investments16-8Motives For An IPOPercent of CFOs who strongly agree with the reason for an IPO16-9Initial OfferingInitial Public Offering(IPO)-First offering of stock to the general public.Underwriter-Firm that buys an issue of securities from a company and resells it to the public.Prospectus-Formal summary that provides information on an issue of securities.Spread-Difference between public offer price and price paid by underwriter.Underpricing-Issuing securities at an offering price set below the true value of the security.16-10Selling Securities to the PublicManagement must obtain permission from the Board of DirectorsFirm must file a registration statement with the SECThe SEC examines the registration during a 20-day waiting periodA preliminary prospectus,called a red herring,is distributed during the waiting periodIf there are problems,the company is allowed to amend the registration and the waiting period starts overSecurities may not be sold during the waiting periodThe price is determined on the effective date of the registration 15-1016-11墓碑式广告的例子16-12The Top Managing Underwriters16-13UnderwritersServices provided by underwritersFormulate method used to issue securitiesPrice the securitiesSell the securitiesSyndicate group of investment bankers that market the securities and share the risk associated with selling the issueSpread difference between what the syndicate pays the company and what the security sells for initially in the market15-1316-14Average Initial IPO Returns16-15Initial OfferingAverage Expenses on 1767 IPOs from 1990-199416-16IPO ProceedsIPO Proceeds and First Day Returns16-17General Cash OffersSeasoned Offering-Sale of securities by a firm that is already publicly traded.General Cash Offer-Sale of securities open to all investors by an already public company.Shelf Registration-A procedure that allows firms to file one registration statement for several issues of the same security.Private Placement-Sale of securities to a limited number of investors without a public offering.16-18Underwriting Spreads(2006)16-19Rights IssueRights Issue-Issue of securities offered only to current stockholders.Example BNP Paribas Bank needs to raise 5.50 billion of new equity.The market price is 77.40/sh.Lafarge decides to raise additional funds via a 1 for 10 rights offer at 65.40 per share.If we assume 100%subscription,what is the value of each right?16-20Rights IssueCurrent Market Value=10 x 77.40=774.00 Total Shares=10+1=11Amount of funds=774+65.40=839.40New Share Price=(839.40)/11 =76.31Value of a Right=76.31 65.40=10.91Example-BNP Paribas Bank needs to raise 5.50 billion of new equity.The market price is 77.40/sh.Lafarge decides to raise additional funds via a 1 for 10 rights offer at 65.40 per share.If we assume 100%subscription,what is the value of each right?16-21Rights IssueSlightly More Difficult Example Lafarge Corp needs to raise 1.28billion of new equity.The market price is 60/sh.Lafarge decides to raise additional funds via a 4 for 17 rights offer at 41 per share.If we assume 100%subscription,what is the value of each right?16-22Rights IssueCurrent Market Value=17 x 60=1,020 Total Shares=17+4=21Amount of funds=1,020+(4x41)=1,184New Share Price=(1,184)/21 =56.38Value of a Right=56.38 41=15.38Example-Lafarge Corp needs to raise 1.28billion of new equity.The market price is 60/sh.Lafarge decides to raise additional funds via a 4 for 17 rights offer at 41 per share.If we assume 100%subscription,what is the value of each right?