· What is an IPO? How does an IPO allow an organization to grow financially? When is a merger or an acquisition, instead of an IPO, more appropriate? Identify the latest 2009 company to go public?
Initial public offering is the first sale of an organization's common stock to public investors. The IPO allows the company to obtain cash to pay off debt, or expand etc. This can help the business grow because the company is able to function by raising capital and keeping up with competitors.
A merger is appropriate when facing a large competitor or larger firm. A merger can be the best way to gain the upper hand in competing with the business world.
The company I chose was Horsehead Holdings which was founded in 1848. The company is a zinc recycle producing specialty zinc and zinc based products.
•A) The initial offer price was 9.97 per share on July 20, 2009
•B) Price 1 month after offering was 11.06 per share
•C) Current market price was 9.86 a share at closing on July 20, 2009
•D) Number of shares outstanding is 35,254,000
•E) Number of shares outstanding 1 month after offering is 17,627,000.
•F) Current number of shares is 47,053,992.