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Company Initial Netscape Offering Public Web Article
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Where is the Capital? Why don’t you Go on Initial Public Offering?
from:
Google, the search engine giant.
Rosneft, Ireland’s state-owned oil giant.
Netscape Communications Corporation, one of the software program manufacturer giants.
Aside from the descriptive word “giant” which refers to their well-established corporate system in their respective industries, these three companies have something in common, together with other large business entities around the world.
They went public through the IPO or the initial public offering.
For individuals who are not avid fans of the issues and other whereabouts circling around the business and investment community, initial public offering does not make sense at all. However, for most corporate entities who want to pursue expansion of their operation as well as providing additional services to the public, initial public offering is an important matter for them.
In finance, IPO or the initial public offering is the first issuance of a company’s common shares to interested public investors. The term “common shares” generally refers to the stocks that are consistently purchased and sold in the market. Take note that common shares are only a percentage of the total shares of a certain company or corporation, thus the majority of its shares are still within the owner/s of such company or corporation and will not be a subject for distribution to the public.
The principal purpose of a company to “go public” (another term for undergoing the IPO process) is to raise capital for the company or corporation. In other words, IPO is one of possible ways where a company or a corporation can raise capital which can be used either for additional support to its day-to-day operation or for business expansion purposes. However, any companies or corporations that will undergo the IPO process are obliged to follow heavy legal compliances and other necessary requirements.
The procedure works just like of a regular auction process. It generally involves several investment banks that will serve as the underwriters for the process. In finance, underwriters are the ones assessing the background of the companies involved in the process preceding the issuance and distribution of common shares to the public. The company or corporation that decided to go on public (or the issuer) will enter an agreement with a lead underwriter to sell the common shares to the public. The underwriter meanwhile approaches various investors who are interested in purchasing any common shares for sale.
In case of large IPO process (which involves large corporate organizations), it is typically underwritten by a syndicate (a group of investment banks dealing with a single company) that is led by a major investment bank which is the lead underwriter. Once the common shares have been distributed to the investors, the underwriters are paid through commissions that are based on the percentage of the value of the common shares they sold. In most cases, the lead underwriters take out the highest commission, with around 8 percent.
For multinational companies that will undergo initial public offering, the process may involve two or three syndicates to deal with various legal requirements in its home country and other countries as well. In addition, because of the heavy legal compliances that must be met, IPO process usually involves two or more law firms that have major practices on securities law.
Initial public offering is important for every corporate organization operating around different markets. Despite of the heavy legal requirements, it is still the best way to raise capital for any company or corporation.
Company Initial Netscape Offering Public Web Specific links
Company Initial Netscape Offering Public Web News
Facebook IPO filing shines a light on company's finances - Los Angeles Times
 AFP | Facebook IPO filing shines a light on company's finances Los Angeles Times Facebook Inc. filed papers Wednesday with the goal of raising $5 billion in a public stock sale that could come in May. The offering would be the largest among Internet companies, eclipsing Google Inc. in 2004 and Netscape Communications in 1995. Facebook Files for an IPO Facebook IPO: What They're Saying Facebook friends Wall Street with planned $5 bn IPO |
Venture capital firm co-founded by Web browser pioneer Marc Andreessen raises ... - Washington Post
Venture capital firm co-founded by Web browser pioneer Marc Andreessen raises ... Washington Post The Menlo Park, Calif., firm, Andreessen Horowitz, has invested in about 90 companies since then. The portfolio includes an unspecified stake in Facebook, which is expected to file its plans for a long-awaited initial public offering of stock as early ... |
IPOs of the Internet Bubble - New Yorker (blog)
IPOs of the Internet Bubble New Yorker (blog) Writing about IPOs in 2003, James Surowiecki noted that sometimes an initial public offering—such as that made by Ford, in the fifties, and Google, in the aughts—is “more than a business transaction.” It is a “cultural event.” The imminent offering ... |
Will Facebook eat advertising? - The Media Online
Will Facebook eat advertising? The Media Online With its initial public offering looming, one pertinent question is if Facebook, with 845 million active and engaged monthly users, will be the software that eats brand advertising? This is the kind of question that our industry has truly never faced ... |
Commentary: Face(book) the Music - Wired News
 Wired News | Commentary: Face(book) the Music Wired News Facebook, which began as a decidedly private Harvard hangout, has begun the process of going absolutely, totally, unabashedly public. Facebook filed for an initial public offering with the SEC Wednesday, which means we have the first raw glimpse of its ... Rushkoff: Facebook vs. the economic system |