Goldman Sachs First Day IPO Goldman Stock Takes Off Discussion

The project requires a solid write up. It includes:

1) Background of firm

2) IPO purpose

3) pricing and structure details

4) first day reaction

5) long term performance.

The goal of this project is to give a comprehensive view of a particular IPO or merger, as if you were a consultant or banker presenting it for a client who wanted to know all about that particular event from a finance standpoint.

The instructions below are not to be considered an all-inclusive list, but merely a list of some of the important ingredients to a successful project. That is, the final product is up to your group to come up with in order to give a comprehensive view of the event.

If you are doing an IPO, your presentation and write-up must address the following points, in any order you choose. Please view these items as a list of things that are important but not all-inclusive:

1. Background on the firm: When was the firm founded? By whom? Give some history of the firm, it’s product, its industry, etc.

2. Purpose for the IPO: Why does the firm want or need to go IPO now? What will it use its funds for?

3. Details on the pricing and structure: How many shares are for sale? What is the price range? Who are the underwriting banks?

4. First day reaction: What was the first day stock price reaction? How much money was left on the table, if any? What theories of IPOs may explain this underpricing in this particular event?

5. Long-term performance: Pick a set of comparable firms and analyze the 5-year returns to this control group. Explain why these set of comparable firms are good comparisons. You may also wish to compare the long-term performance to the size and B-M portfolio like Homework 3. How sensitive is your analysis to various assumptions?

I am in charge of Part 4 only I need 3-4 paper and the company is Goldman sachs