Comprehensive course analysis
Who should attend
- executives and managers
- professionals in all functions
- investment and commercial bankers
- equity and fixed income investment managers
- investment and analysts
- credit analysts and credit controllers
- treasury managers and staff
- lawyers and newly-qualified accountants
- company brokers and advisers.
About the course
Be prepared for the execution of a successful IPO, understand equity capital
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.
The course will be delivered in a highly interactive, participative way, involving many activities and exercises, thereby ensuring maximum learning and integration of the learning points into the workplace, when the participants return to their regular roles.
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 ith 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
- Share allocation
- Price stabilisation mechanism/greenshoe
- What are the criteria of a successful IPO from vendors and banks viewpoint
Case study : Detailed analysis of the Facebook IPO
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.)
Case study : Detailed analysis of the Barclays rights issues
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
- Bidder’s strategy and tactics
- Different types of buy-side approaches: from friendly to bearhug and hostile
- Target’s defense strategy and tactics
Case study : Review of strategies used in Sanofi’s bid
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
Case study: Valuation of a large private food manufacturer for its IPO
Session 3: Virtual 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
Case study: Financial modelling of Ferrero Rocher, a chocolate manufacturer
Serge is an experienced Corporate Finance professional with over 20 years’ experience in M&A and capital market transactions. He has successfully completed in excess of EUR 30 billion across multiple geographies (US, Europe, MENA).He began his career as a Credit Analyst at Banque Continentale...
Videos and materials
Because of COVID-19, many providers are cancelling or postponing in-person programs or providing online participation options.
We are happy to help you find a suitable online alternative.