Question 1 Provide a brief description of the activities of the business (2 marks, 100 words).
Question 2 Listing firms must be public companies to have their shares traded on the ASX. Did your firm have to change the legal ownership structure to be a public company when the prospectus was issued? If yes, provide some explanations as to why the original owners of the business consider that a public company is now a more appropriate structure. If no, provide some explanation as to why your firm would have chosen the legal ownership structure of a public company without the immediate intention of listing (3 marks, 200 words).
Question 3 Is the issue underwritten? Using the specific characteristics of the IPO firm, explain why the issuers were likely to make this choice (4 marks, 150 words).
Question 4 Identify any signaling mechanisms the issuer has used in the prospectus. Explain why issuers might use these signals. What other signals could the issuers have provided? (6 marks, 400 words)
Question 5 Do your issuers meet the definition of small business prior to listing? Compare the characteristics of your firm to those in the definition of small business for this unit (5 marks, 300 words).
Question 6 (6 marks) a) Identify the reasons given by this IPO firm for seeking listing on the exchange (3 marks, 100 words) b) Compare these reasons with those identified as reasons for seeking listing in the topic notes (3 marks, 250 words)
Question 7 (4 marks) Classify the IPO firm according to the lifecycle stages identified in Churchill and Lewis’s (1983) five stage model. Provide detailed justification for your choice of category (400 words)
Question 8 (10 marks)
a) How much debt does the issuer have before the capital raising and how much will debt there will be when funds have been raised from the IPO? List each individual debt and the dollar amount of that debt. Justify the inclusion of each individual amount as ‘debt’ (3 marks, 100 words)
b) Relate the levels of debt to the reasons for listing in Question 6. (3 marks, 200 words).
c) Identify the sources of debt for the IPO firm. Are these sources consistent with those you would expect from your study of the unit materials? Justify your answer (4 marks, 300 words) NOTE: Any material that should be referenced (and is not) will not be allocated a mark. Define all key terms.