The course covers the preparatory, marketing, regulatory and legal requirements for arranging and implementing an international equity offering. Participants will receive practical and detailed guidance on all stages of the process.
An international equity offering is discussed from a company’s point of view as well as from the perspective of the investment bank responsible for the flotation. A decision on whether to bypass a company’s local market is considered along with the prospect of combining a domestic public offer with an international private placing or, for larger companies, planning simultaneous public offers in several countries.
Particular attention is paid to the formulation of the investment case underpinning the attractions of a proposed flotation and to the subsequent marketing, bookbuilding and pricing of the shares to be offered.
Participants will receive a booklet containing copies of 14 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 has decided to float his company on the London Stock Exchange. It has been agreed that the directors may sell 10 per cent. of their holding as part of the flotation. You advise on how many new shares need to be issued to raise the cash required to fulfil the company’s development plan. You then calculate the enlarged share capital, the projected market capitalisation and a pro forma PER assuming repayment of debt.
Your client’s stockbrokers have agreed to underwrite a rights issue. You calculate how many shares will need to be issued at the discounted price to raise the required funds, compute the theoretical ex-rights price and comment on how shareholders can deal with their rights.