Help me in Article 4 please. I need it for presentation so can you explain it easily to understand and detail please..

Article 4 ? Sift through IPO ?rubbish? to find value

1. Provide a brief summary (1 to 2 minutes) of the principal issues raised in this Article in a form understandable by a person without your high standard of financial literacy.

2. What does the author mean when she refers to; ?It is pretty standard these days to get a new listing on the share market valued at 15 times forward earnings??

3. Provide the audience with a brief update as to the overall share market performance of Australian IPO?s listed in say the last year and comment on the factors that have likely contributed to those IPO?s that are the best performing and those that have been the worst performing over this period.

ARTICLE FINA2002: Financial Markets and Institutions (2016) Articles - Group Presentation Students should refer to the Course Profile (Assessment) for specific information in relation to the format of the Group Presentation and the requirement to prepare a single page handout having a particular structure for distribution to class colleagues / learning facilitator at the commencement of the Presentation. As each topic will require the presenting group to undertake research into the topic area, early preparation for this assessment requirement is recommended. Student groups are required to select from the following list of Articles for their Group Presentation Topic and to respond to the questions included in the accompanying Article Questions - Group Presentation document. 4: Companies and Markets Sift through IPO 'rubbish' to find value Jemima Whytel 22 May 2015 The Australian Financial Review AFNR Copyright 2015. Fairfax Media Management Pty Limited. Sift through IPO 'rubbish' to find value When you get a call from a broker spruiking the opportunity to invest in a Papua New Guinea-based non-bank lender, it's probably the moment to stop and think about the state of the IPO market. That's if you have the time. In the past week or so, at least 12 pre-marketing reports have landed on the desks of institutional investors. Some say they are now barely bothering to leaf through them. _______________________________________________________________________________ Student Group Presentation Articles: Financial Markets & Institutions (2016) 1 PNG's Kina Group, which is aiming for a $200 million listing and which has already secured cornerstone investors who like its growth profile, is one of the more exotic offerings in a mixed bag of floats that includes everything from sheet retailer Adairs, insurer Greenstone and mortgage broker Australian Finance Group, which will list on Friday. On Thursday, mobile virtual network operator Amaysim was adding to the float warm-up meetings, holding a briefing with investors ahead of formal marketing of the IPO due to start next week. So far this year, the top 10 IPOs have raised a collective $1.5 billion. The largest has been accounting software group MYOB, and coming in at number 10 is AirXpanders, a US-based medical device company seeking to raise $36.5 million. While it may feel to many as though the floats are coming thick and fast, the ones that are lining up for listings are far smaller than last year's offerings. In 2014, the top 10 IPOs raised a collective $12.5 billion, according to Citigroup. These top 10 included Medibank Private, Healthscope, Spotless and Estia Health. However, the sharemarket performance of those top 10 IPOs has been mixed. Medibank is hovering around its issue price, Spotless shares are up more than 40 per cent, and Monash IVF shares are trading lower. If sifting through the rubbish was important last year, it looks to be even more valuable this year. The IPO window swung open in June 2013 with IVF roll-up Virtus Health, and since then, hasn't really stopped. In 2013, the top 10 IPOs raised $4.2 billion, the largest being Pact Group and Nine Entertainment. But - aside from a really big flop, and there have already been a few less-than-stellar offerings - it's hard to see what will slow the rush of companies coming to market. Interest rates are low, and investors are eager for yield. Further, a bunch of local fund managers are concerned about being too overweight the major banks and Telstra, and are quick to look for any alternatives. The upshot? It's pretty standard these days to get a new listing on the sharemarket valued at 15 times forward earnings. And it's worth noting that institutional investors still account for a substantial percentage of the share register in many cases - in the past, one clear indicator of float fatigue has been when retail investors are left with the bulk of the stock. There are still a few large private equity portfolio assets waiting in the wings. But for the most part, the big ones have already listed, with the exception of share registry group Link Market Services and possibly Coates Hire, which has eyed a listing before. In both cases, the suggestion is that the private equity funds are focused on improving the businesses before sending them to market (a process that Link is said to be further down the track on). In other words, many of the private equity funds have already flipped the better assets. Bankers say the market has a short memory: a float window open for two or so years isn't really that unusual if you cast your mind back pre-financial crisis. Looked at one way, there's nothing to worry about in an extended period for IPOs. Looked at another, it's all the more reason to be discriminating about what's on offer. Document AFNR000020150521eb5m0000w _______________________________________________________________________________ Student Group Presentation Articles: Financial Markets & Institutions (2016) 2 ARTICLE _______________________________________________________________________________ Student Group Presentation Articles: Financial Markets & Institutions (2016) 3