Jet Blue Ipo Valuation Essay

IPO Valuation

FIN-605
Md. Miran Hossain College of Business Colorado State University

10 September, 2012

1. What are the advantages and disadvantages of going public? Discuss the IPO process. The Advantages of Going Public  Financial Benefit The financial benefit in the form of raising capital is the most distinct advantage of going public. Capital can be used to fund research and development, fund capital expenditure or even used to pay off existing debt. Moreover, once the company is public, it has access to a new and liquid source of capital for any future needs it may have.  Increased Public Awareness As IPOs often generate publicity by making a company’s products known to a new group of potential customers, it created …show more content…
Throughout the IPO process, additional all-hands meetings should take place to discuss any problems, review drafts of the registration statement, and determine whether the registration process is on schedule  ‘Quiet Period’ Begins After completing the preliminary understanding with the underwriters, a “quiet period” begins during which a company is subject to SEC guidelines regarding the publication of information outside the prospectus. The opportunity to enhance awareness of a company, its name, products, and geographic markets will be limited, since any publicity that creates a favorable attitude toward the company’s securities could be considered illegal.  Preparing the Registration Statement Preparing and filing the registration statement involves providing the information specified by the SEC form and complying with the applicable SEC rules in the most efficient manner possible. The registration statement consists of two principal parts. Part I contains the essential facts regarding the business operations, financial condition, and management of the company that are required to be included in the prospectus, including the company’s financial statements. Part II contains additional information that is not required to be included in the prospectus.  Performing Due-diligence Procedures Throughout the registration statement preparation process, the entire IPO team will perform necessary procedures to provide a reasonable

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