Business -- Corporate Finance -- IPO for AVG
What type of IPO should AVG use -- a traditional IPO or an online auction? Based on your analysis and findings, what would you recommend to the executives of AVG? Explain your reasoning in detail.
AVG Technologies N.V. is a "consumer-focused IT security" company seeking to "simplify, optimize and secure" the Internet for its users (AVG Technologies, 2013). Founded in 1991 and based in Amsterdam, AVG has aggressively acquiring other companies such as Ewido, Exploit Prevention Labs, Sana Security, Visionize, DroidSecurity, TuneUp, Bsecure, Ookla, and OpenInstall (AVG Technologies, 2013). On February 1, 2012, AVG announced its IPO of 8 million ordinary shares -- 4 million from the company and 4 million from shareholders - @ $16.00/share, to begin trading on the NYSE on February 2, 2012 (AVG Technologies, 2012). Following SEC procedures, AVG filed a Registration Statement with the SEC, which the SEC declared effective (SEC Office of Investor Education and Advocacy, 2013), and the offering was made only by a prospectus (AVG Technologies, 2012). The offering's bookrunning managers were Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC and Goldman, Sachs & Co., and its co-managers were Allen & Company LLC, Cowen and Company, LLC and JMP Securities LLC (AVG Technologies, 2012).
Given the company's hi-tech nature, aggressive and successful history and current prospects for continuing global expansion, it is likely to attract large institutional investors such as hedge funds and other top clients of large investment banks, in addition to small and even individual investors. On balance, it appears that AVG would benefit most from the traditional IPO process rather than auction-based IPO (Clinton, 2011). First, a traditional IPO enjoys the support of traditional investment banks and other large, established Wall Street investors (and therefore less financial risk in that aspect), which Morningstar and Google forfeited by going the nontraditional auction-based IPO in order to enjoy the advantage of "democratically" reaching millions of small investors (Carter Chalk, 2005). Secondly, a traditional IPO will give AVG the opportunity to rage a higher amount of capital and investment return than it could raise by the nontraditional...
IPO for AVG? An Initial Public Offering (IPO) is described as the first sale of stock by a company that seeks for further growth. IPO is commonly used by such companies in order to generate necessary capital for expansion. AVG is an example of a company looking for further growth through an initial public offering since the firm is uniquely positioned to lead innovation in the industry. While the company
Business -- Corporate Finance -- Initial Public Offerings AVG is a state-of-the-art IT security company that has been very successful, has aggressively acquired other companies, does business worldwide, and is poised to use an IPO to raise capital. There is a question about whether a traditional IPO or a nontraditional auction-based method would be the better choice for AVG. The pros and cons of traditional vs. nontraditional IPO methods will be
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
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