Introduction to equity capital markets introductory

The module covers the life cycle of an initial public offering (IPO) as well as companies'' choices in the secondary markets for equity. The IPO section includes a detailed timetable together with documentation requirements.

The business may wish to provide real-life information to give participants examples of the bank''s deals and the approach the bank takes to pitching for business and pricing transactions. AMT will build a tailored case study centred on real-life examples from the business.
Overview

• IPOs - the pros and cons of going public
• Building an investment case
• Offer structure
• Syndicate structure
• Targeting investors
• Pricing and allocation
• Stabilization and the role of the "green shoe" in an offering
• Aftermarket performance
• Key legal agreements and opinions required
• "Hard" and "soft" underwriting

Secondary offerings

• Rights issues
• What are pre-emption rights and why they matter
• Calculating the theoretical ex-rights price
• Advantages and disadvantages of a pro-rata offering
• Suitability of stocks for accelerated offerings
• Block trades
• Private placements