財(cái)務(wù)管理課件cha3

15.1RaisingCapitalChapter1515.1RaisingCapitalChapter1515.2KeyConceptsandSkillsUnderstandtheventurecapitalmarketanditsroleinfinancingnewbusinessesUnderstandhowsecuritiesaresoldtothepublicandtheroleofinvestmentbankersUnderstandinitialpublicofferingsandthecostsofgoingpublic15.2KeyConceptsandSkillsUnd15.3ChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingNewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesIssuingLong-TermDebtShelfRegistration15.3ChapterOutlineTheFinanci15.4VentureCapitalPrivatefinancingforrelativelynewbusinessesinexchangeforstockUsuallyentailssomehands-onguidanceTheultimategoalisusuallytotakethecompanypublicandtheVCwillbenefitfromthecapitalraisedintheIPOManyVCfirmsareformedfromagroupofinvestorsthatpoolcapitalandthenhavepartnersinthefirmdecidewhichcompanieswillreceivefinancingSomelargecorporationshaveaVCdivision15.4VentureCapitalPrivatefin15.5ChoosingaVentureCapitalistLookforfinancialstrengthChooseaVCthathasamanagementstylethatiscompatiblewithyourownObtainandcheckreferencesWhatcontactsdoestheVChave?Whatistheexitstrategy?15.5ChoosingaVentureCapital15.6SellingSecuritiestothePublicManagementmustobtainpermissionfromtheBoardofDirectorsFirmmustfilearegistrationstatementwiththeSECSECexaminestheregistrationduringa20-daywaitingperiodApreliminaryprospectus,calledaredherring,isdistributedduringthewaitingperiodIfthereareproblemsthecompanyisallowedtoamendtheregistrationandthewaitingperiodstartsoverSecuritiesmaynotbesoldduringthewaitingperiodThepriceisdeterminedontheeffectivedateoftheregistration15.6SellingSecuritiestothe15.7Table15.115.7Table15.115.8UnderwritersServicesprovidedbyunderwritersFormulatemethodusedtoissuesecuritiesPricethesecuritiesSellthesecuritiesPricestabilizationbyleadunderwriterSyndicate–groupofinvestmentbankersthatmarketthesecuritiesandsharetheriskassociatedwithsellingtheissueSpread–differencebetweenwhatthesyndicatepaysthecompanyandwhatthesecuritysellsforinthemarket15.8UnderwritersServicesprovi15.9FirmCommitmentUnderwritingIssuersellsentireissuetounderwritingsyndicateThesyndicatethenresellstheissuetothepublicTheunderwritermakesmoneyonthespreadbetweenthepricepaidtotheissuerandthepricereceivedfrominvestorswhenthestockissoldThesyndicatebearstheriskofnotbeingabletoselltheentireissueformorethanthecostMostcommontypeofunderwritingintheUnitedStates15.9FirmCommitmentUnderwriti15.10BestEffortsUnderwritingUnderwritermustmaketheir“besteffort”tosellthesecuritiesatanagreed-uponofferingpriceThecompanybearstheriskoftheissuenotbeingsoldTheoffermaybepulledifthereisnotenoughinterestattheofferpriceandthecompanydoesnotgetthecapitalandtheyhavestillincurredsubstantialflotationcostsNotascommonasitusedtobe15.10BestEffortsUnderwriting15.11GreenShoesandLockupsGreenShoeprovisionAllowssyndicatetopurchaseanadditional15%oftheissuefromtheissuerAllowstheissuetobeoversubscribedProvidessomeprotectionfortheleadunderwriterastheyperformtheirpricestabilizationfunctionLockupagreementsRestrictiononinsidersthatpreventsthemfromsellingtheirsharesofanIPOforaspecifiedtimeperiodThelockupperiodiscommonly180daysThestockpricetendstodropwhenthelockupperiodexpiresduetomarketanticipationofadditionalshareshittingthestreet15.11GreenShoesandLockupsGr15.12IPOUnderpricingInitialPublicOffering–IPOMaybedifficulttopriceanIPObecausethereisn’tacurrentmarketpriceavailableAdditionalasymmetricinformationassociatedwithcompaniesgoingpublicUnderwriterswanttoensurethattheirclientsearnagoodreturnonIPOsonaverageUnderpricingcausestheissuerto“l(fā)eavemoneyonthetable”15.12IPOUnderpricingInitialP15.13Figure15.215.13Figure15.215.14Figure15.315.14Figure15.315.15WorktheWebExampleHowhaverecentIPOsdone?ClickonthewebsurfertogototheBloombergsiteandfollowthe“IPOCenter”linkHowmanycompanieshavegonepublicinthelastweek?Howhavecompaniesthatwentpublicthreemonthsagodone?Whataboutsixmonthsago?15.15WorktheWebExampleHowh15.16NewEquityIssuesandPriceStockpricestendtodeclinewhennewequityisissuedPossibleexplanationsforthisphenomenonSignalingandmanagerialinformationSignalinganddebtusageIssuecostsSincethedropinpricecanbesignificantandmuchofthedropmaybeattributabletonegativesignals,itisimportantformanagementtounderstandthesignalsthatarebeingsentandtrytoreducetheeffectwhenpossible15.16NewEquityIssuesandPri15.17IssuanceCostsSpreadOtherdirectexpenses–legalfees,filingfees,etc.Indirectexpenses–opportunitycosts,i.e.,managementtimespentworkingonissueAbnormalreturns–pricedroponexistingstockUnderpricing–belowmarketissuepriceonIPOsGreenShoeoption–costofadditionalsharesthatthesyndicatecanpurchaseaftertheissuehasgonetomarket15.17IssuanceCostsSpread15.18TypesofLong-termDebtBonds–publicissueoflong-termdebtPrivateissuesTermloansDirectbusinessloansfromcommercialbanks,insurancecompanies,etc.Maturities1–5yearsRepayableduringlifeoftheloanPrivateplacementsSimilartotermloanswithlongermaturityEasiertorenegotiatethanpublicissuesLowercoststhanpublicissues15.18TypesofLong-termDebtBo15.19ShelfRegistrationPermitsacorporationtoregisteralargeissuewiththeSECandsellitinsmallportionsReducestheflotationcostsofregistrationAllowsthecompanymoreflexibilitytoraisemoneyquicklyRequirementsCompanymustberatedinvestmentgradeCannothavedefaultedondebtwithinlastthreeyearsMarketvalueofstockmustbegreaterthan$150millionNoviolationsoftheSecuritiesActof1934inthelastthreeyears15.19ShelfRegistrationPermits15.20QuickQuizWhatisventurecapitalandwhattypesoffirmsreceiveit?Whataresomeoftheimportantservicesprovidedbyunderwriters?WhattypeofunderwritingisthemostcommonintheUnitedStatesandhowdoesitwork?WhatisIPOunderpricingandwhymightitpersist?Whataresomeofthecostsassociatedwithissuingsecurities?Whataresomeofthecharacteristicsofprivateplacementdebt?Whatisshelfregistration?15.20QuickQuizWhatisventure15.21RaisingCapitalChapter1515.1RaisingCapitalChapter1515.22KeyConceptsandSkillsUnderstandtheventurecapitalmarketanditsroleinfinancingnewbusinessesUnderstandhowsecuritiesaresoldtothepublicandtheroleofinvestmentbankersUnderstandinitialpublicofferingsandthecostsofgoingpublic15.2KeyConceptsandSkillsUnd15.23ChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingNewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesIssuingLong-TermDebtShelfRegistration15.3ChapterOutlineTheFinanci15.24VentureCapitalPrivatefinancingforrelativelynewbusinessesinexchangeforstockUsuallyentailssomehands-onguidanceTheultimategoalisusuallytotakethecompanypublicandtheVCwillbenefitfromthecapitalraisedintheIPOManyVCfirmsareformedfromagroupofinvestorsthatpoolcapitalandthenhavepartnersinthefirmdecidewhichcompanieswillreceivefinancingSomelargecorporationshaveaVCdivision15.4VentureCapitalPrivatefin15.25ChoosingaVentureCapitalistLookforfinancialstrengthChooseaVCthathasamanagementstylethatiscompatiblewithyourownObtainandcheckreferencesWhatcontactsdoestheVChave?Whatistheexitstrategy?15.5ChoosingaVentureCapital15.26SellingSecuritiestothePublicManagementmustobtainpermissionfromtheBoardofDirectorsFirmmustfilearegistrationstatementwiththeSECSECexaminestheregistrationduringa20-daywaitingperiodApreliminaryprospectus,calledaredherring,isdistributedduringthewaitingperiodIfthereareproblemsthecompanyisallowedtoamendtheregistrationandthewaitingperiodstartsoverSecuritiesmaynotbesoldduringthewaitingperiodThepriceisdeterminedontheeffectivedateoftheregistration15.6SellingSecuritiestothe15.27Table15.115.7Table15.115.28UnderwritersServicesprovidedbyunderwritersFormulatemethodusedtoissuesecuritiesPricethesecuritiesSellthesecuritiesPricestabilizationbyleadunderwriterSyndicate–groupofinvestmentbankersthatmarketthesecuritiesandsharetheriskassociatedwithsellingtheissueSpread–differencebetweenwhatthesyndicatepaysthecompanyandwhatthesecuritysellsforinthemarket15.8UnderwritersServicesprovi15.29FirmCommitmentUnderwritingIssuersellsentireissuetounderwritingsyndicateThesyndicatethenresellstheissuetothepublicTheunderwritermakesmoneyonthespreadbetweenthepricepaidtotheissuerandthepricereceivedfrominvestorswhenthestockissoldThesyndicatebearstheriskofnotbeingabletoselltheentireissueformorethanthecostMostcommontypeofunderwritingintheUnitedStates15.9FirmCommitmentUnderwriti15.30BestEffortsUnderwritingUnderwritermustmaketheir“besteffort”tosellthesecuritiesatanagreed-uponofferingpriceThecompanybearstheriskoftheissuenotbeingsoldTheoffermaybepulledifthereisnotenoughinterestattheofferpriceandthecompanydoesnotgetthecapitalandtheyhavestillincurredsubstantialflotationcostsNotascommonasitusedtobe15.10BestEffortsUnderwriting15.31GreenShoesandLockupsGreenShoeprovisionAllowssyndicatetopurchaseanadditional15%oftheissuefromtheissuerAllowstheissuetobeoversubscribedProvidessomeprotectionfortheleadunderwriterastheyperformtheirpricestabilizationfunctionLockupagreementsRestrictiononinsidersthatpreventsthemfromsellingtheirsharesofanIPOforaspecifiedtimeperiodThelockupperiodiscommonly180daysThestockpricetendstodropwhenthelockupperiodexpiresduetomarketanticipationofadditionalshareshittingthestreet15.11GreenShoesandLockupsGr15.32IPOUnderpricingInitialPublicOffering–IPOMaybedifficulttopriceanIPObecausethereisn’tacurrentmarketpriceavailableAdditionalasymmetricinformationassociatedwithcompaniesgoingpublicUnderwriterswanttoensurethattheirclientsearnagoodreturnonIPOsonaverageUnderpricingcausestheissuerto“l(fā)eavemoneyonthetable”15.12IPOUnderpricingInitialP15.33Figure15.215.13Figure15.215.34Figure15.315.14Figure15.315.35WorktheWebExampleHowhaverecentIPOsdone?ClickonthewebsurfertogototheBloombergsiteandfollowthe“IPOCenter”linkHowmanycompanieshavegonepublicinthelastweek?Howhavecompaniesthatwentpublicthreemonthsagodone?Whataboutsixmonthsago?15.15WorktheWebExampleHowh15.36NewEquityIssuesandPriceStockpricestendtodeclinewhennewequityisissuedPossibleexplanationsforthisphenomenonSignalingandmanagerialinformationSignalinganddebtusageIssuecostsSincethedropinpricecanbesignificantandmuchofthedropmaybeattributabletonegativesignals,itisimportantformanagementtounderstandthesignalsthatarebeingsentandtrytoreducetheeffectwhenpossible15.16NewEquityIssuesandPri15.37IssuanceCostsSpreadOtherdirectexpenses–legalfees,filingfees,etc.Indirectexpenses–opportunitycosts,i.e.,managementtimespentworkingonissueAbnormalreturns–pricedroponexistingstockUnderpricing–belowmarketissuepriceonIPOsGreenShoeoption–costofadditionalsharesthatthesyndicatecanpurchaseaftertheissueh