This course is a thorough introduction to raising finance on the capital markets. Equity instruments and restructuring strategies are discussed in relation to flotations and the subsequent equity financing of public companies. The roles of advisors are described together with the relevant regulatory requirements.
Public company takeovers are considered from the point of view of the offeror and the offeree and the principal rules of the Takeover Code are explained. In respect of all these activities the purpose and objectives of corporate governance is clarified.
Participants will receive a booklet containing copies of 16 slides and 70 pages of very comprehensive notes. Each slide will cover a number of related topics and the accompanying notes will support the content of the course to be delivered by the trainer.
During the course of the day, participants will undertake one or two exercises (problems) in groups of two or three (depending on the size of the class) which will involve considering what advice should be given to a client in particular circumstances. Participants will discuss the exercise with each other and then with the trainer and will receive a written answer to the problem.
Your client considers that its share price is too low to permit a rights issue and so decides to raise funds by way of convertible loan stock. You calculate the conversion price, the conversion ratio, the conversion value and the conversion premium.
Your client’s stockbrokers have agreed to underwrite a rights issue at a 20 per cent. discount. You calculate how many shares will need to be issued to raise the required funds, compute the theoretical ex-rights price and comment on how shareholders can deal with their rights.