Question: 1. Why does APL need to go public? 2. What are the benefits and costs of going public? 3. Should APL be worried about IPO

1. Why does APL need to go public? 2. What are the benefits and costs of going public? 3. Should APL be worried about IPO underpricing? 4. Can the offer price be justified? 5. On a relative basis, how attractive or unattractive is the issue price (vis-a-vis industry peers)? 6. As an investor would you invest in the company? 7. What are the benefits of IPO grading or Analyst Recommendations before a firm goes public? Do you expect underpricing to reduce when these mechanisms are present? Why? Assume a cost of equity of 13.5% and a terminal growth rate of 2% in order to value APL

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