Find the prospectus for a recent IPO. How do the issue costs compare with (a) Those of
Question:
Find the prospectus for a recent IPO. How do the issue costs compare with
(a) Those of the Marvin issue and
(b) Those shown in Table?
Can you suggest reasons for the differences?
Transcribed Image Text:
D TABLE Issue Amount, $ millions Underwriter's Spread (%) Type Company Common Stock: IPO $1,250 American Water Works 7.0% IPO Rosetta Stone 129.4 7.0 IPO Energy Recovery 119.0 7.0 61.2 IPO Arc Sight 7.0 IPO 22.0 7.0 Heritage-Crystal Clean Seasoned Ford Motor 1,425 3.00 Seasoned Express Scripts 1,403 1.68 Newmont Mining Seasoned 1,110 1.17 Seasoned American Express 500 3.30 Brookdale Senior Living Seasoned 143 4.75 Debt: $1,000 2.25% global notes, 2011 Hewlett-Packard 15% 1,000 3.2% global notes, 2014 Wal-Mart Stores 35 8% global notes, 2014 Starwood Hotel & Resorts 500 1.38 3% convertible senior notes, 2012 Newmont Mining 450 2.50 Mariner Energy 11.75% global notes, 2016 300 1.91
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Related Book For
Principles of Corporate Finance
ISBN: 978-0077404895
10th Edition
Authors: Richard A. Brealey, Stewart C. Myers, Franklin Allen
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