Professional Training

Initial Public Offerings (IPO) & Equity Capital Markets (ECM)

Euromoney Learning, In London (+1 locations)
Length
2 days
Price
2.79 GBP excl. VAT
Next course start
7 November, 2024 See details
Course delivery
Classroom
Length
2 days
Price
2.79 GBP excl. VAT
Next course start
7 November, 2024 See details
Course delivery
Classroom
Leave your details so the provider can get in touch

Course description

Initial Public Offerings (IPO) & Equity Capital Markets (ECM)

This two-day training covers the main characteristics of Equity Capital Markets. Participants will start by covering the main functions of the capital markets, including the key players, markets, banks and investors. Using real life case studies, they will go through in detail Initial Public Offerings including drafting the prospectus, the roadshow, the book-building, pricing, allocation of shares and price stabilisation mechanisms. Participants will discuss the different types of follow-on offerings, namely private placements, accelerated book-buildings and rights issues as well as public takeovers. Finally, participants will review equity valuation in the context of an IPO pricing and share allocation.

Upcoming start dates

1 start date available

7 November, 2024

  • Classroom
  • London
  • English

Training Course Content

Day One

Session 1

Capital Markets Fundamentals

In this session participants will cover the main functions of the capital markets. Most importantly, the key players, banks and investors are covered in detail. Participants will then examine the life of a corporate and review the funding options

  • What financial markets do?
  • Who are the major players?
  • Domestic and international capital markets
  • Debt versus equity
  • Primary versus secondary market
  • Distinguishing between retail, corporate and investment banking
  • Buy side versus sell side
  • League tables, equity underwriting
  • Where transactions take place: Exchanges vs. OTC vs. ECNs
  • The buy-side industry/investors
  • Active vs. passive investment management
  • Placing an order

Session 2

Equity Products

In this session we introduce the different types of equity, their description and significance

  • Ordinary shares
    • Authorised, issued, outstanding and free float
    • With one voting rights or with different voting rights
    • “Cum-div” and “ex-div” price
    • Corporate governance
  • Preferred stocks
  • Equity warrants
  • Convertible debt
    • Issuer motivation and investor base
    • Bond floor and option value
    • Issuer call

Session 3

Equity Capital Markets

In this session we introduce equity markets and products. We will drill down on the characteristics of equity and equity valuation. We will introduce the life-cycle of equities. We will also look at the differences between primary and secondary shares and primary and secondary markets, including motivations of investors.

  • Company life cycle, pros and cons
  • Primary vs. secondary markets
  • Main equity markets
  • What is an IPO, a secondary offering?
  • What are primary shares, secondary shares?
  • Equity markets and trading systems
  • Criteria for admission and voting rights

Session 4

Initial Public Offerings

This session focuses entirely on the characteristics of IPOs. We will focus on analysing the Facebook IPO.

  • ECM functions
    • Origination and execution
    • Syndicate desk
    • Sales team
  • Banking roles (bookrunner, manager, underwriter) and fees
  • Best efforts vs. underwriting
  • International offerings vs. Dutch auctions
  • Steps in equity offerings
    • Prospectus
    • Roadshow
    • Underwriting
    • Share allocation
    • Price stabilisation mechanism/greenshoe
  • What are the criteria of a successful IPO from vendors and banks viewpoint

Session 5

Follow-on Offerings

During the final session of our training, we will focus entirely on the characteristics of the different type of offerings available following the Initial Public Offering. We will analyse the Barclays right issue in detail.

The need for re-capitalization and follow-on placements

  • Process and recent market deals
  • Pros and cons of various processes
  • ABBs (Accelerated book build)
  • Block trades
  • Overnight public offering
  • Rights issues
  • Depositary receipts (eg, GDR, ADR, etc.)

Day Two

Public Takeover, Equity Valuation and IPO Pricing

Session 1

Public Takeovers

During the final session of our training, we will focus on the Public Takeovers and the different rules that apply.

  • Public takeovers vs. private transactions
  • General principles of the takeover code
  • Mandatory offer
  • Squeeze-out mechanism
  • Offer price
  • Counter-offers
  • Timetables
  • Bidder’s strategy and tactics
  • Different types of buy-side approaches: from friendly to bearhug and hostile
  • Target’s defense strategy and tactics

Session 2

Equity Valuation

During this session, we will discuss the main equity valuation methods to derive a price for the equity offering

  • Determining fair value of the equity for an IPO
    • Trading comparables and discounted cash flow analysis (DCF)
  • Discount to fair value in the primary market
  • Value range and decision on final pricing for allocation
  • Trading comps as the main driver
    • Enterprise Value vs. equity multiples
    • Lack of cash flows and valuation methods
  • The five steps of DCF
    • Free cash flow
    • Terminal value
    • Weighted average cost of capital
    • Discounting cash flows to present value
    • From enterprise value to equity value

Session 3

Role Play on Valuation/IPO

During this session, we will perform basic modelling impact on the company and shareholders

  • Assessment of fair value: DCF and trading multiples
  • IPO modelling review
  • Pre-money and post money valuation
  • Earnings per share accretion and dilution

Course delivery details

This course is being offered as a hybrid course with delegates able to attend in-person in London or virtually via Zoom. If you would like to book on to the virtual course, you can do so on the location menu to the right and select virtual.

Why choose Euromoney Learning

4.6/5 rating on course check for service

60,000 professionals trained across public courses

80+ countries where training is delivered

Customer Outreach Award

customer-outreach-badge-2019

We believe that it should be easy for you to find and compare training courses. 

Our Customer Outreach Award is presented to trusted providers who are excellent at responding to enquiries, making your search quicker, more efficient and easier, too.

Expenses

Course fee: £2645 + VAT

Request info

Contact course provider

Country *

reCAPTCHA logo This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Euromoney Learning

At Euromoney Learning, we understand that learning doesn’t start and end when you leave the classroom. We know that the financial markets never stand still, and that technology has both simplified and added complexity at a break-neck pace. That’s why...

Read more and show all courses with this provider

Ads