COMPANY SPECIFIC (Discuss for 3 companies listed below)For questions 1 and 2, you can ONLY use...

Question

COMPANY SPECIFIC (Discuss for 3 companies listed below)
For questions 1 and 2, you can ONLY use information available at the time of the offering. You are free to use any publicly available information including S-1 (prospectus).
COMPANY: jetBlue (2002)
1. What are the specific reasons that your company went public?
2. Do you agree with your company’s choice to go public? Discuss the timing of the IPO?
3. What has happened to your company since it has gone public?
a. short term, long term performance
. strategic changes
c. management changes
d. major acquisitions/divestitures
COMPANY: Google (2004)
1. What are the specific reasons that your company went public?
2. Do you agree with your company’s choice to go public? Discuss the timing of the IPO?
3. What has happened to your company since it has gone public?
e. short term, long term performance
f. strategic changes
g. management changes
h. major acquisitions/divestitures
COMPANY: Facebook (2012)
1. What are the specific reasons that your company went public?
2. Do you agree with your company’s choice to go public? Discuss the timing of the IPO?
3. What has happened to your company since it has gone public?
i. short term, long term performance
j. strategic changes
k. management changes
l. major acquisitions/divestitures

company-specific-5ms4zzx5.docx

Pallavi · Accepted Answer

JetBlue (2002)
1.  The main reason due to which Jet Blue decided to go public in 2002 is that it wanted to raise additional capital both for its capital expenditures as well as its working capital requirements (Jetblue Airways Corp). The company wanted to get access to capital market because it wanted to enhance its liquidity position and use the raised funds for increasing its working capital reserve as well as finance its other capital expenditures such as those required for purchasing more aircrafts (Jetblue Airways Corp). Jet blue was able to raise funds of $128.9 million (approx) as its IPO was significantly overpriced and its public issue significantly was over-subscribed.
2. I agree with the company’s choice to go public at that particular point of time. JetBlue’s IPO was launched in April 2002. I agree with the company’s choice to go public because it was a viable option for the company to raise money from share issue as the proceeds from issue of shares could be used by the company for its future expansion and growth and also for meeting its increased working capital requirements. In my opinion, the timing of the IPO was right, because the company was making profits at that time and the market conditions were right, i.e. there was boom in the capital market (Gelsi). As a result, the IPO of the company was considered very attractive by the investors and it was over subscribed and it after noticing the popularity of its IPO amongst the investors, JetBlue even decided to increase the number of shares offered from 5.5 million to 5.87 million (Gelsi). 
3. 
a. The short term performance of JetBlue soon after the IPO was really good, the company achieved a rapid growth from years 2003 to 2008. It faced some challenges in years 2009 to 2010 due to the global recession, however it again picked up its pace of growth and its long term performance i.e.

COMPANY SPECIFIC (Discuss for 3 companies listed below) For questions 1 and 2, you can ONLY use information available at the time of the offering. You are free to use any publicly available...

Solution

Answer To This Question Is Available To Download

Related Questions & Answers

Submit New Assignment