The goal of this homework is to critically analysze an IPO. You are expected to write a report of no more than 2-3 pages (excluding appendix) which will address the issues below:
Your report should answer the following questions related to the company assigned to you: COMPANY/IPO: Vista International group TICKER:VGL
• Give a brief overview of the company, its products, and the details of the IPO, including: how much it is raising, what the money will be used for, and what the outcome (over/under subscribed, success/failure on listing etc.) of the IPO was?
• Do you believe the IPO was fairly priced or over/under priced compared to similar companies in the industry (show evidence through examples and numbers)? Thoroughly justify your answer based on firm fundamentals, economic and market scenario, analyst recommendations and other factors involved in this IPO. ( use ratios and other financial data Hint: Among other justifications, you also need to use the appropriate relative valuation ratios to justify your answer.
• Would you have invested in this company? Justify your answer with appropriate investment rationale and numbers
• Describe what has happened to the share price since the listing. Had you bought $50,000 worth of shares, what would have been your return on the investment compared to that of: o The sector index and overall market index in the country the stock is listed ( Chart the monthly price of this stock with that of the sector index ) o 5 comparable peers in the same industry.
• Explain your findings in the above question and justify why or why not the company over/under performed relative to the industry, peer companies and overall market. 1 1 1 1 MicrosoftInternetExplorer4 0 2 Document not specified 7.8 ç£… Normal 0