AVG is a software company, known for its suite of online security products. The company has 106 million customers and a variety of products that it markets to both businesses and consumers. It announced in January, 2012 that it intends to file for an initial public offering, or IPO (AVG, 2012). The company must determine what the best type of IPO is. AVG is planning to float on the New York Stock Exchange
In order to determine the best method of floating the IPO, AVG and its underwriters need to take several factors into consideration. Each of the two different types of IPO will have different characteristics that need to be evaluated in order to make an informed decision. In a traditional IPO, the company hires an investment bank. The market value of the company is researched and the number of shares that will be issued is also determined. . The price per share is set, and the investment bank then markets the offering to its clients, or builds a consortium of banks to market the offering. The bank takes a percentage as commission (No author, 2011).
In an auction-based IPO is based on the use of the Internet to find the pool of investors. An investment bank is still needed, but it does less work in this case because it does not perform the marketing function. In addition, the company will often set the price and the number of shares that are issued. The format of the auction is typically a Dutch auction, where the company sets the price higher than what any investor is expected to bid, and then lowers the price until bidding begins.
A traditional IPO is likely to attract the traditional IPO investor. The investment bank will market its products to institutional buyers first, as they are the largest and most important customers. There are then allocations to retail investors through their brokers. However, on a good IPO the bulk of the investors are likely to be institutional. An auction-based IPO is likely to attract a different mix of investor, and these investors may take more of an active role in their investments. They will...
The exponential growth of the Internet has also served as the catalyst for the growth of highly collaborative, interactive forums and platforms on which Delphi-like brainstorming can be accomplished (Decker, Wagner, Scholz, 2005). Conversely many of the external relationships companies have and that are essential to understanding how the strategic planning process will impact an organization lend themselves to quantification. An example of this level of quantification of external
company's investment success especially in relation to other companies. The paper aims at establishing how a company's competitiveness can be calculated in relation to others in the same industry and the factors that hinder the calculations or hinder a true picture of the same Compare industry average and a main competitor For convenient comparison of industry average, majority of companies place Industry average values next to a company's financial measures for
(Pan, 1999; paraphrased) The point at which it is generally considered acceptable to stop testing has as its basis two criteria for stop-testing criteria which are those of: (1) when a threshold has been reached with the reliability; and (2) when the testing costs are not justified by reliability gains. V. Test Automation Overview The work of Carl J. Nagle states the fact that: "When developing our test strategy, we must minimize
Software Development Life Cycle ( SDLC) Explain Requirement process ( in SDLC) in detail. Why is this exercise important? Requirements engineering is a fundamental activity in systems development and it is the process by which the requirements for software systems are identified, systematized and implemented and are followed through the complete lifecycle. Traditionally engineers focused on narrow functional requirements. Now it is being argued by Aurum and Wohlin (2005) that focusing only
" (Information Society and Media, 2005) f. The eContent Programme and the eTen Programme The 100 million dollar eContent Programme (2001-2005) focuses on encouraging growth and development of tie European digital content industry. This programme funds projects with short time-to-market and as well experiments with new models in business and partnerships through use of technology that is presently available. The programme's stated 'main thrust' is to; Improve access to an expand the
Both are equally important. For the first, we will have company specialists describing the software development tools we used, as well as the mechanisms that are included in the development of a new module or product within the suite. On the other hand, presenting and implementing the organizational culture of the company is equally important. Besides promoting this in day-to-day operational activities, we will also have, from time to time,
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