This tool allows you to model the financial implications of an Initial Public Offering (IPO) for the issuing firm, the selling shareholders, the underwriting syndicate (investment banks), as well as the primary investors. With a few key assumptions about the transaction, the tool helps you assess the appropriate issue price as well as the expected post-IPO stock price of the firm.
To use the tool, simply enter the characteristics of the planned transaction on the tab "Assumptions." The tab then "Detailed Analysis" provides a step-by-step guide through the most important elements of the analysis. Finally, the tab "Transaction Summary" offers a graphical overview of the structure and summarizes the key deal terms for the parties involved. For a detailed discussion of the tool and its various steps, please refer to the course module Initial Public Offerings (IPOs)