SouFun: Flotation IPO
Read the article SouFun sets eyes on $300 million flotation IPO and then have a go at the questions below. You can either read the article in the window below, or follow the previous link to open the article in a new window.
Read more about Global IPOs in the following article:
To support your answers, you may wish to review the Wikipedia article on an IPO
Define the term Initial Public Offering.
Explain how the funds raised from an IPO will be used by the SouFun.
Explain the role of merchant banks, such as JP Morgan Chase, in an IPO.
Analyse the advantages and disadvantages of a flotation.
You may wish to investigate the following statement:
"The $30.5 billion that new issues raised globally in July was the most since November 2007".
See if you can find some other examples of recent IPOs and examine why there is a link between the popularity of IPOs and the business cycle.