公司理財-Chap015課件

RaisingCapitalChapter15Copyright?2013byTheMcGraw-HillCompanies,Inc.Allrightsreserved.McGraw-Hill/IrwinRaisingCapitalChapter15CopyrChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingChapterOutlineTheFinancingLChapterOutline(continued)NewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesRightsDilutionIssuingLong-TermDebtShelfRegistrationChapterOutlineNewEquitySaleChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingChapterOutlineTheFinancingLVentureCapitalPrivatefinancingforrelativelynewbusinessesinexchangeforequityUsuallyentailssomehands-onguidanceThecompanyshouldhavean“exit”strategySellthecompany–VCbenefitsfromproceedsfromsaleTakethecompanypublic–VCbenefitsfromIPOVentureCapitalPrivatefinanciVentureCapitalManyVCfirmsareformedfromagroupofinvestorsthatpoolcapitalandthenhavepartnersinthefirmdecidewhichcompanieswillreceivefinancingSomelargecorporationshaveaVCdivisionVentureCapitalManyVCfirmsaChoosingaVentureCapitalistLookforfinancialstrengthChooseaVCthathasamanagementstylethatiscompatiblewithyourownObtainandcheckreferencesWhatcontactsdoestheVChave?Whatistheexitstrategy?ChoosingaVentureCapitalistLChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingChapterOutlineTheFinancingLSellingSecuritiestothePublicManagementmustobtainpermissionfromtheBoardofDirectorsFirmmustfilearegistrationstatementwiththeSECTheSECexaminestheregistrationduringa20-daywaitingperiodApreliminaryprospectus,calledared

herring,isdistributedduringthewaiting periodIfthereareproblems,thecompanyisallowedtoamendtheregistrationandthewaitingperiodstartsoverSellingSecuritiestothePublSellingSecuritiestothePublicSecuritiesmaynotbesoldduringthewaitingperiod5.ThepriceisdeterminedontheeffectivedateoftheregistrationSellingSecuritiestothePublChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingChapterOutlineTheFinancingLAlternateIssueTypesAlternateIssueTypesAlternateIssueTypesAlternateIssueTypesChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingChapterOutlineTheFinancingLUnderwritersServicesprovidedbyunderwritersinclude:FormulatemethodusedtoissuesecuritiesPricethesecuritiesSellthesecuritiesPricestabilizationbyleadunderwriterUnderwritersServicesprovidedUnderwritersSyndicate–groupofinvestmentbankersthatmarketthesecuritiesandsharetheriskassociatedwithsellingtheissueUnderwritersSyndicate–groupUnderwritersSpread–differencebetweenwhatthesyndicatepaysthecompanyandwhatthesecuritysellsforinitiallyinthemarketUnderwritersSpread–differencFirmCommitmentUnderwritingIssuersellsentireissuetounderwritingsyndicateThesyndicatethenresellstheissuetothepublicTheunderwritermakesmoneyonthespreadbetweenthepricepaidtotheissuerandthepricereceivedfrominvestorswhenthestockissoldFirmCommitmentUnderwritingIsFirmCommitmentUnderwritingIssuersellsentireissuetounderwritingsyndicateThesyndicatebearstheriskofnotbeingabletoselltheentireissueformorethanthecostThisisthemostcommontypeofunderwritingintheUnitedStatesFirmCommitmentUnderwritingIsBestEffortsUnderwritingUnderwritermustmaketheir“besteffort”tosellthesecuritiesatanagreed-uponofferingpriceThecompanybearstheriskoftheissuenotbeingsoldTheoffermaybepulledifthereisnotenoughinterestattheofferprice.Inthiscase,thecompanydoesnotgetthecapital,andtheyhavestillincurredsubstantialflotationcostsBestEffortsUnderwritingUnderDutchAuctionUnderwritingUnderwriteracceptsaseriesofbidsthatincludenumberofsharesandpricepershareThepricethateveryonepaysisthehighestpricethatwillresultinallsharesbeingsoldThereisanincentivetobidhightomakesureyougetinontheauctionbutknowingthatyouwillprobablypayalowerpricethanyoubid(TheUSTreasuryhasusedDutchauctionsforyears!)DutchAuctionUnderwritingUndeGreenShoeProvisionAllowsthesyndicatetopurchaseanadditional15%oftheissuefromtheissuerAllowstheissuetobeoversubscribedProvidessomeprotectionfortheunderwritersastheyperformtheirpricestabilizationfunctionGreenShoeProvisionAllowsthLockupAgreementsRestrictiononinsidersthatpreventsthemfromsellingtheirsharesofanIPOforaspecifiedtimeperiodThelockupperiodiscommonly180daysThestockpricetendstodropwhenthelockupperiodexpiresduetomarketanticipationofadditionalshareshittingthestreetLockupAgreementsRestrictionoChapterOutlineTheFinancingLifeCycleofaFirm:Early-StageFinancingandVentureCapitalSellingSecuritiestothePublic:TheBasicProcedureAlternativeIssueMethodsUnderwritersIPOsandUnderpricingChapterOutlineTheFinancingLIPOUnderpricingMaybedifficulttopriceanIPObecausethereisn’tacurrentmarketpriceavailablePrivatecompaniestendtohavemoreasymmetricinformationthancompaniesthatarealreadypubliclytradedIPOUnderpricingMaybedifficuIPOUnderpricingUnderwriterswanttoensurethat,onaverage,theirclientsearnagoodreturnonIPOsUnderpricingcausestheissuerto“l(fā)eavemoneyonthetable”IPOUnderpricingUnderwriterswInitialReturnsforIPO’sInitialReturnsforIPO’sFrequencyofIPO’sFrequencyofIPO’sWorktheWebHowhaverecentIPOsdone?ClickonthewebsurfertogotoHooversandfollowthe“IPOCentral”linkLookattheIPOScorecardandMoneyLeftontheTabletoseehowmuchunderpricingtherehasbeeninrecentissuesWhatotherinformationcanyoufindonIPOsatthissite?WorktheWebHowhaverecentIPChapterOutline(continued)NewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesRightsDilutionIssuingLong-TermDebtShelfRegistrationChapterOutlineNewEquitySaleNewEquityIssuesandPriceStockpricestendtodeclinewhennewequityisissuedPossibleexplanationsforthisphenomenon:SignalingandmanagerialinformationSignalinganddebtusageIssuecostsNewEquityIssuesandPriceStoNewEquityIssuesandPriceThedropinpricecanbesignificantandmuchofthedropmaybeattributabletonegativesignals,itisimportantformanagementtounderstandthesignalsthatarebeingsentandtrytoreducetheeffectwhenpossible.NewEquityIssuesandPriceTheChapterOutline(continued)NewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesRightsDilutionIssuingLong-TermDebtShelfRegistrationChapterOutlineNewEquitySaleIssuanceCostsSpreadOtherdirectexpenses–legalfees,filingfees,etc.Indirectexpenses–opportunitycosts,i.e.,managementtimespentworkingonissueIssuanceCostsSpreadIssuanceCostsAbnormalreturns–pricedroponexistingstockUnderpricing–belowmarketissuepriceonIPOsGreenShoeoption–costofadditionalsharesthatthesyndicatecanpurchaseaftertheissuehasgonetomarketIssuanceCostsAbnormalreturnsChapterOutline(continued)NewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesRightsDilutionIssuingLong-TermDebtShelfRegistrationChapterOutlineNewEquitySaleRightsOfferings:BasicConceptsIssueofcommonstockofferedtoexistingshareholdersAllowscurrentshareholderstoavoidthedilutionthatcanoccurwithanewstockissue“Rights”aregiventotheshareholders:Specifynumberofsharesthatcanbe purchasedSpecifypurchasepriceSpecifytimeframeRightsmaybetradedOTCoronanexchangeRightsOfferings:BasicConcepTheValueofaRightThepricespecifiedinarightsofferingisgenerallylessthanthecurrentmarketpriceThesharepricewilladjustbasedonthenumberofnewsharesissuedThevalueoftherightisthedifferencebetweentheoldsharepriceandthe“new”sharepriceTheValueofaRightThepriceRightsOfferingExampleSupposeacompanywantstoraise$10million.Thesubscriptionpriceis$20.Thecurrentstockpriceis$25.Thefirmcurrentlyhas5,000,000sharesoutstanding.1.Howmanysharesmustbeissued?Sharesissued=10,000,000/20=500,000RightsOfferingExampleSupposeRightsOfferingExampleSupposeacompanywantstoraise$10million.Thesubscriptionpriceis$20.Thecurrentstockpriceis$25.Thefirmcurrentlyhas5,000,000sharesoutstanding.2.Howmanyrightswillittaketo purchaseoneshare?Rightsneeded=5,000,000/500,000=10RightsOfferingExampleSupposeRightsOfferingExampleSupposeacompanywantstoraise$10million.Thesubscriptionpriceis$20.Thecurrentstockpriceis$25.Thefirmcurrentlyhas5,000,000sharesoutstanding.3.Whatisthevalueofoneright?Totalinvestment=10*25+20=270Pricepershare=270/11=24.55Valueofaright=25–24.55=.45RightsOfferingExampleSupposeChapterOutline(continued)NewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesRightsDilutionIssuingLong-TermDebtShelfRegistrationChapterOutlineNewEquitySaleDilutionDilutionisalossinvalueforexistingshareholdersPercentageownership–sharessoldtothegeneralpublicwithoutarightsofferingMarketvalue–firmacceptsnegativeNPVprojectsBookvalueandEPS–occurswhenmarket-to-bookvalueislessthanoneDilutionDilutionisalossinChapterOutline(continued)NewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesRightsDilutionIssuingLong-TermDebtShelfRegistrationChapterOutlineNewEquitySaleTypesofLong-TermDebt1.Bonds–publicissueof long-termdebt2.Privateissues:TermloansPrivateplacements(Theseareeasiertorenegotiatethanpublicissuesandtheyarelowerincoststhanpublicissues)TypesofLong-TermDebt1.BonTypesofLong-TermDebtTermloansDirectbusinessloansfromcommercialbanks,insurancecompanies,etc.Maturities1–5yearsRepayableduringlifeoftheloanPrivateplacements SimilartotermloansbutwithlongermaturityTypesofLong-TermDebtTermloChapterOutline(continued)NewEquitySalesandtheValueoftheFirmTheCostofIssuingSecuritiesRightsDilutionIssuingLong-TermDebtShelfRegistrationChapterOutlineNewEquitySaleShelfRegistrationPermitsacorporationtoregisteralargeissuewiththeSECandsellitinsmallportionsoveratwo-yearperiodReducestheflotationcostsofregistrationAllowsthecompanymoreflexibilitytoraisemoneyquicklyShelfRegistrationPermitsacoShelfRegistrationRequirements:CompanymustberatedinvestmentgradeCannothavedefaultedondebtwithinlastthreeyearsMarketvalueofstockmustbegreaterthan$150millionNoviolationsoftheSecuritiesActof1934inthelastthreeyearsShelfRegistrationRequirementsQuickQuizWhatisventurecapital,andwhattypesoffirmsreceiveit?Whataresomeoftheimportantservicesprovidedbyunderwriters?WhattypeofunderwritingisthemostcommonintheUnitedStates,andhowdoesitwork?WhatisIPOunderpricing,andwhymightitpersist?QuickQuizWhatisventurecapiQuickQuiz5.Whataresomeofthecostsassociatedwithissuingsecurities?6.Whatisarightsoffering,andhowdoyouvaluearight?7.Whataresomeofthecharacteristicsofprivateplacementdebt?8.Whatisshelfregistration?QuickQuiz5.WhataresomeofEthicsIssues

Brokershavebeenknowntosellsecuritiesbasedonsalesscriptsthathavelittletodowiththeinformationprovidedintheprospectus.Also,investorsoftenmakeinvestmentdecisionsbeforereceiving(orreading)theprospectus.

Whoisatgreaterfaultinthiscase?EthicsIssuesBrokershaveEthicsIssues

Traditionally,IPOshareallocationshavebeenreservedfortheunderwritingsyndicates’bestcustomers.

Whatethicalimplicationsexist?EthicsIssuesTraditionallComprehe