Once someone buys stocks from a company at the IPO, in what way does the company generate money?
Monthly archive: July, 2008
1.8 Billion Ipo as Stocks Collapse Starts by Emaar Mgf
Cira asks:
Emaar MGF Land Ltd., controlled by the Middle East’s biggest real estate developer by market value, started its initial public offering in India today amid the biggest plunge in equities in almost four years.
“The market may go up, or come down, but there are fundamentals of a company and the long-term investors will look at that,’’ Shravan Gupta, executive vice chairman and managing director at Emaar MGF, said in an interview at an event in Mumbai. “We hope we will be seen in a long-term perspective.’’
Emaar MGF is seeking 70.8 billion rupees ($1.8 billion), in what would be the second largest IPO by an Indian real estate company. The developer will offer 102.6 million shares at 610 rupees to 690 rupees apiece, the New Delhi-based company said in a statement today.
India’s Sensitive Index had the steepest move among global benchmarks today on concern the U.S. will enter a recession and as investors placed funds in Reliance Power Ltd.’s record IPO. DLF Ltd. had its biggest fall since completing a record share sale by an Indian real estate company in June.
“Emaar would get enough demand to close the issue, but if one expects something like Reliance Power, they would be disappointed,’’ said Arun Kejriwal, director at research firm KRIS. “There’s enough money in the system to see the issue through, although the markets are off their peak.’’
Attracted Bids
The developer is seeking to sell shares amid an 8.7 percent drop in the National Stock Exchange’s 50-stock Nifty index and a 7.4 percent drop in the Sensex index.
Unitech Ltd., the second biggest developer by market value, fell 60.3 rupees, or 13 percent, to 414.55 rupees, while Housing Development & Infrastructure Ltd. plunged 28 percent to 894.3 rupees.
Emaar MGF this month raised 1 billion rupees selling shares to state-run financial institution IFCI Ltd., New Delhi Television Ltd., and newspaper publisher Bennett Coleman & Co., Chief Financial Officer Sanjay Baweja told reporters.
Real estate firms raised a record $4 billion in share sales last year to benefit from growing demand for houses, offices and shops in an economy poised to grow at least 9 percent for a third year. That included $2.3 billion by DLF and fund raisings by Housing Development & Infrastructure and Puravankara Projects Ltd.
DLF got bids for 3.5 times the shares on sale, catapulting its promoter Kushal Pal Singh’s fortune to $35 billion, the wealthiest developer in the world, according to Fortune.
`Shortfall of Houses’
Reliance Power attracted $190 billion of bids for its IPO last week as a record economic expansion lured overseas investors to Indian shares.
Emaar MGF had 12,544 acres of land reserves as of August, of which it has development plans for 11,580 acres, the company said in its share sale documents.
The developer, a joint venture of Dubai-based Emaar Properties PJSC, and MGF Development Ltd. of India, is developing homes, offices, hotels and special economic zones and building the capital’s Commonwealth Games village.
“There’s a huge shortfall of houses,’’ said Gupta. “Our target is about 10,000 to 15,000 houses a year which we should be able to sell comfortably.’’
The government estimates India could face a shortfall of 26.5 million houses by 2012.
Set up in 2005, the company has projects in New Delhi, Mohali, Gurgaon, Dehradun, Hyderabad, and Pune. Emaar plans to set up 30,000 hotel rooms over eight years in different categories and is forming joint ventures with Hyatt Corp., Accor SA and Whitbread Plc, among others, Gupta said.
Emaar MGF hired Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Merrill Lynch & Co., Enam Financial Consultants Ltd. and Kotak Mahindra Capital Co. to help sell the shares. The offer will run Feb. 1 to Feb. 6.
Emaar MGF Land Ltd., controlled by the Middle East’s biggest real estate developer by market value, started its initial public offering in India today amid the biggest plunge in equities in almost four years.
“The market may go up, or come down, but there are fundamentals of a company and the long-term investors will look at that,’’ Shravan Gupta, executive vice chairman and managing director at Emaar MGF, said in an interview at an event in Mumbai. “We hope we will be seen in a long-term perspective.’’
Emaar MGF is seeking 70.8 billion rupees ($1.8 billion), in what would be the second largest IPO by an Indian real estate company. The developer will offer 102.6 million shares at 610 rupees to 690 rupees apiece, the New Delhi-based company said in a statement today.
India’s Sensitive Index had the steepest move among global benchmarks today on concern the U.S. will enter a recession and as investors placed funds in Reliance Power Ltd.’s record IPO. DLF Ltd. had its biggest fall since completing a record share sale by an Indian real estate company in June.
“Emaar would get enough demand to close the issue, but if one expects something like Reliance Power, they would be disappointed,’’ said Arun Kejriwal, director at research firm KRIS. “There’s enough money in the system to see the issue through, although the markets are off their peak.’’
Attracted Bids
The developer is seeking to sell shares amid an 8.7 percent drop in the National Stock Exchange’s 50-stock Nifty index and a 7.4 percent drop in the Sensex index.
Unitech Ltd., the second biggest developer by market value, fell 60.3 rupees, or 13 percent, to 414.55 rupees, while Housing Development & Infrastructure Ltd. plunged 28 percent to 894.3 rupees.
Emaar MGF this month raised 1 billion rupees selling shares to state-run financial institution IFCI Ltd., New Delhi Television Ltd., and newspaper publisher Bennett Coleman & Co., Chief Financial Officer Sanjay Baweja told reporters.
Real estate firms raised a record $4 billion in share sales last year to benefit from growing demand for houses, offices and shops in an economy poised to grow at least 9 percent for a third year. That included $2.3 billion by DLF and fund raisings by Housing Development & Infrastructure and Puravankara Projects Ltd.
DLF got bids for 3.5 times the shares on sale, catapulting its promoter Kushal Pal Singh’s fortune to $35 billion, the wealthiest developer in the world, according to Fortune.
`Shortfall of Houses’
Reliance Power attracted $190 billion of bids for its IPO last week as a record economic expansion lured overseas investors to Indian shares.
Emaar MGF had 12,544 acres of land reserves as of August, of which it has development plans for 11,580 acres, the company said in its share sale documents.
The developer, a joint venture of Dubai-based Emaar Properties PJSC, and MGF Development Ltd. of India, is developing homes, offices, hotels and special economic zones and building the capital’s Commonwealth Games village.
“There’s a huge shortfall of houses,’’ said Gupta. “Our target is about 10,000 to 15,000 houses a year which we should be able to sell comfortably.’’
The government estimates India could face a shortfall of 26.5 million houses by 2012.
Set up in 2005, the company has projects in New Delhi, Mohali, Gurgaon, Dehradun, Hyderabad, and Pune. Emaar plans to set up 30,000 hotel rooms over eight years in different categories and is forming joint ventures with Hyatt Corp., Accor SA and Whitbread Plc, among others, Gupta said.
Emaar MGF hired Citigroup Inc., Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Merrill Lynch & Co., Enam Financial Consultants Ltd. and Kotak Mahindra Capital Co. to help sell the shares. The offer will run Feb. 1 to Feb. 6.
Initial Public Offering - Protect Yourself By Knowing The Basics Of IPO!
Karry asks:
The key to success in an investment is to play it right: A rule familiar with every investor notable in his field. This includes primary knowledge of business, diplomacy and a meritorious demeanor.
Glancing at some of the innate tendencies of a successful investor, primarily, apart from possessing basic knowledge, he requires a businessman’s insight and must be capable of drawing out appropriate programs and methods, propaganda and creating formidable allies. He must be able to handle grave situations when uncertainty arises.
In case you are faced with want for extra funds to support the increase in marketing and production, it isn’t wise to turn to money lending services for credit as your returns will be used to pay off the debts leaving you at square one with neither loss nor gain.
This is the stage at which an Initial Public Offering (IPO) proves effective and a good investor will be able to identify the solution.
An IPO is basically the company’s first business venture with public investors involving selling the company’s common shares with the idea of bringing in extra funds to support the company’s growth. This method involves affiliation of investment banks as underwriters for the undertaking. The company plays the role of the issuer and will draw out a suitable scheme providing personal data involving the company’s history, financial status, etc, which will be sent to the Securities and Exchange Commission for validation.
On earning the Commission’s consent, the cost of these common shares are decided and are ready to be advertised among prospective buyers among the public.
The depreciation of the market does not originate around the US legislation, but during the IPO procedures. The demeanor of a successful investor is directly related to this. Business crimes have changed the face and procedures involved with IPO’s and the defaulters never profit hanks to the unlawful methods they adopt to achieve success.
The following are examples of backsliding during the IPO process:
- AOL Time Warner was faced with losses during the free riding period of their IPO process causing them to introduce new ventures as compensation which differed from the signed agreement regarding the costs of the common shares.
- Enron faced more serious accusations on many of their executives involved in the IPO process for using unlawful tactics to gain profit like unrecorded alliances, bribes in exchange for international agreements and manipulation of the Texas and California energy markets. These Executives were sentenced by the court, exiled from their positions as investors.
Anyone aspiring to become a notable investor must keep this in mind and play the market the way it should be instead of seeking alternative methods.
The key to success in an investment is to play it right: A rule familiar with every investor notable in his field. This includes primary knowledge of business, diplomacy and a meritorious demeanor.
Glancing at some of the innate tendencies of a successful investor, primarily, apart from possessing basic knowledge, he requires a businessman’s insight and must be capable of drawing out appropriate programs and methods, propaganda and creating formidable allies. He must be able to handle grave situations when uncertainty arises.
In case you are faced with want for extra funds to support the increase in marketing and production, it isn’t wise to turn to money lending services for credit as your returns will be used to pay off the debts leaving you at square one with neither loss nor gain.
This is the stage at which an Initial Public Offering (IPO) proves effective and a good investor will be able to identify the solution.
An IPO is basically the company’s first business venture with public investors involving selling the company’s common shares with the idea of bringing in extra funds to support the company’s growth. This method involves affiliation of investment banks as underwriters for the undertaking. The company plays the role of the issuer and will draw out a suitable scheme providing personal data involving the company’s history, financial status, etc, which will be sent to the Securities and Exchange Commission for validation.
On earning the Commission’s consent, the cost of these common shares are decided and are ready to be advertised among prospective buyers among the public.
The depreciation of the market does not originate around the US legislation, but during the IPO procedures. The demeanor of a successful investor is directly related to this. Business crimes have changed the face and procedures involved with IPO’s and the defaulters never profit hanks to the unlawful methods they adopt to achieve success.
The following are examples of backsliding during the IPO process:
- AOL Time Warner was faced with losses during the free riding period of their IPO process causing them to introduce new ventures as compensation which differed from the signed agreement regarding the costs of the common shares.
- Enron faced more serious accusations on many of their executives involved in the IPO process for using unlawful tactics to gain profit like unrecorded alliances, bribes in exchange for international agreements and manipulation of the Texas and California energy markets. These Executives were sentenced by the court, exiled from their positions as investors.
Anyone aspiring to become a notable investor must keep this in mind and play the market the way it should be instead of seeking alternative methods.
For those who know anything about the upcoming VISA IPO, how well do you think it will do in the future?
Hiram asks:
What are the prospects for VISA’s stock?? Will VISA stock go up over 400% like Mastercard’s? Great stock to have? to hold onto?? Or buy and then sell within a short time??
How well do you think VISA’s stock will do in the short term (2 years) and how well do you think it will do in the long term (5, 10, 20, 30 years from now) ??
What are the prospects for VISA’s stock?? Will VISA stock go up over 400% like Mastercard’s? Great stock to have? to hold onto?? Or buy and then sell within a short time??
How well do you think VISA’s stock will do in the short term (2 years) and how well do you think it will do in the long term (5, 10, 20, 30 years from now) ??
