Question
What are the pros and cons of launching an IPO on the Madrid Bolsa?
CASE EXHIBIT 3 Comparative IPO Listings Closing Price %Change IPO Date IPO Price Fina Day 1/o9/99 $20.81 $28.71 1/og/99 C20.00 o.30 2o5/98 $20.0 $2731 Cempany Country KPNQwest Netherlands/ NASDAQ Total Shares Offered 440 million 11.1 million 67 million ADRs ( ADR 4 ordinary) 12/10/96 $80 $19.75 U.S 48 million ADSs ( ADS 7 ordinary) a8/97 1200 $1200 75 million ordinary (1 ADR- 8.7 million Energis UK 2/09/97 $23.89 $24.25 297 2g0 pence 292 pence 10/18/96 $1200 03/10/97 DM 620 DM 98.00 07/1o/97 Fr 215.o0 Fr 258.00 on/o1/99 DM 5200 DM 61.00 07/z/98 $70 $4381 07/21/98 Fr 161.70 Fr 243.00 Mobil kom Germany Neuer Markt Omnicom France TeldafaxGermany Neuer Markt Equant Netherlands NYSE 85 million a6 1 million Exclading overallotment Moved to NYSE on to/25/99 Acquired by Global Telesystems Group. Merger announced December 1998 at a price of $5-96 per Esprit ordinary share(841.72 per ADS) Nequired by Global Telesystems Group. Majority stake purchased in April 1999 at a price of 195 euros (Fr 1,279) per share EASDAQ A pan-European over-the-counter exchange modeled after the NASDAQ.The two exchanges have similar listing requirements, By listing shares on the EASDAQ, European companies can also get access to American investors through the NASDAQ The EASDAQ opened on November 27, 1997, and is based in Brassels. The eschange is controlled by go European banks. The NASDAQ holds a small stake in the eschange. Neuvea“ Marche: A new exchange geared toward smaller start-up companies. Shares in the exchange trade twice a day. There are two daily pricing quotations,at 10:30am. and 440 p.m.Paris time, where the market is based. A central order book is used for private client orders, and a separate market-making system is used for institutional investors. The eschange opened on March 21, 1997 Seuer Markt Opened on March 10, 1997, targeting midsiae high-growth stocks. The eschange is controlled by Germany's largest banks through the Deutsche Boerse AG. The Neuer Markt is hoased within the Prankfurt Stock Exchange, The Neuer Markt plans to hook up with the Nouveau Marche and other eschanges in Amsterdam and Brussels through the Earo NM, a pan-European eschange ue: Bloomberg
Explanation / Answer
Pros & cons of launching an IPO on Madrid bolsa:
Pros:
Cons:
