An Ipo Case Study

1. Executive Summary:

Going public is probably one of the biggest milestones in any Company’s lifecycle. Going public is not everybody’s cup of tea. There is a high risk of failure in going public. According to the ‘Top 10 IPO readiness challenges’ magazine issued by Ernst & Young in 2008, the IPO process is treated as a long term transformational process by market outperformers. It brings about a huge change to every facet of business and organizational culture. Companies need to plan many months in advance, organize and set up a focused team for this specific assignment. IPO is a risky investment for any Company which decides to go public, especially in this era of a global financial and economic crisis. However, progress always involves risk and as David Lloyd George states, we cannot be afraid of taking the big step as a chasm cannot be crossed in two small jumps!

The aim of this project study on Initial Public offering (IPO) is to drive home the concept, its features, its importance, its advantages, disadvantages, stock exchange related performance and other important related concepts.

To get to know it all about an IPO, in addition to going through the concepts, we also take up a case study for better understanding. We examine and study the case of the Initial Public Offering undertaken by NBNK Investments PLC, a financial investment vehicle. It aims to acquire bank assets to create a huge UK retail bank which would provide traditional banking services, but with a touch of modernity. Eventually, they also plan to venture into wealth management services.

At the outset, the report defines and talks about the concepts related to IPO and as to why this topic was selected. It also talks about what benefits would be derived out of this study. Moving on, the report provides background information about the Stock Exchanges on which listings take place in UK, global