Going Public in the USA and the Valuation of IPOs

Diploma Thesis from the year 2001 in the subject Business economics - Investment and Finance, grade: 1,0, Kiel University of Applied Sciences (Wirtschaft), language: English, abstract: Inhaltsangabe:Abstract:§In the course of trade liberalization, globalization, and multi-national corporations, companies and private persons invest in and are financed by cross-boarder transactions. There are several key trends that are globalizing the world economy and driving business to become more multinational to survive and prosper.§The objectives of this thesis are to give an overview of the going public procedure and the registration requirements for U.S. stock exchanges. Hereby, the paper just focuses on the major U.S. stock exchanges NYSE, Nasdaq and the American Stock Exchange (Amex). Second, the paper gives on overview of valuation methods. However, the paper emphasizes only on those valuation approaches, which are used for valuing firms at IPOs. the thesis discusses the economical benefits of an initial public offering on U.S stock exchanges. the thesis gives recommendations for potential non-U.S. issuers that may pursue a listing on one of the U.S. stock exchanges.§Inhaltsverzeichnis:Table of Contents:§Table of ContentsIII§TablesIX§FiguresXI§List of AppendixXII§AbbreviationXIII§SymbolsXVII§1.Introduction1§1.1Relevance of the Topic1§1.2Objectives of the Thesis3§1.3Structure of the Thesis4§2.The U.S. Stock Exchanges5§2.1New York Stock Exchange5§2.1.1Overview5§2.1.2The New York Stock Exchange Market Data6§2.1.3NYSE Listing Requirement7§2.2Nasdaq11§2.2.1Overview11§2.2.2Nasdaq Market Data13§2.2.3Nasdaq Listing Requirements14§2.3Amex18§2.3.1Overview18§2.3.2Amex Market Data19§2.3.3Amex Listing Requirements20§3.The U.S. Regulations and Authorities21§3.1The SEC21§3.2The NASD23§3.2.1Profile of the NASD23§3.2.2NASD Regulation23§3.2.3The Nasdaq Stock Market, Inc.24§3.2.4American Stock Exchange LLC24§3.2.5NASD Dispute Resolution, Inc.25§3.3State Regulations25§3.4Securities Act of 193326§3.4.1Registration requirements26§3.4.2Registration Exemption27§3.4.3Liabilities under the Securities Act29§3.5Securities Exchange Act of 193430§3.5.1Registration Requirements30§3.5.2Liabilities under the Exchange Act32§4.American Depositary Receipts33§4.1Function of ADRs33§4.2Reasons for ADRs34§4.3Types of ADR Programs35§4.3.1Unsponsored versus Sponsored ADRs35§4.3.2Public versus Private ADR Programs36§4.3.3Non-Capital versus Capital Raising ADR Programs36§4.4The Depositary Bank39§4.5ADRs and Accounting Standards41§4.5.1Accounting Requirements for Non-U.S. Companies41§4.5.2Accounting According to Item 1743§4.5.3Accounting According to Item 1844§4.6The ADR Market44§5.The IPO Team47§5.1Underwriters47§5.1.1Function of the Underwriter47§5.1.2Selecting the Underwriter48§5.1.3Types of Underwriting50§5.2Attorneys51§5.3Accountants52§5.4Financial Public Relations53§5.5Consultants and Advisors55§5.6Financial Printers56§6.The IPO Process57§6.1Preparation and Organizational Change57§6.1.1The Company's IPO Maturity57§6.1.2Preparing for the Transition58§6.1.3Legal Preparation59§6.1.3.1Incorporating the Company59§6.1.3.2Legal Due Diligence60§6.1.4Financial Reporting61§6.1.4.1Preparing the Financial Reporting System61§6.1.4.2Financial Due Diligence62§6.2Registration Process63§6.2.1Registration Overview63§6.2.2Registration Statement63§6.2.3Waiting Period64§6.2.4SEC Review Process65§6.2.5Road Show66§6.2.6Quiet Period66§6.2.7Costs of Going Public67§6.3Regist...