IPO Masterclass - IPOs | FPOs | Valuation | Raising Capital

Learn why companies raise capital and how debt and equity funding intersect with IPOs and FPOs in the primary market, with liquidity on the secondary market.

Explore how investment banks act as financial intermediaries and market advisors in fundraising, IPOs, mergers and acquisitions, underwriting, trading, and research.

Explore the IPO process, from selecting management and underwriters to listing and pricing, and weigh advantages like capital raising and liquidity against high going-public costs.

Analyze IPO valuation by combining quantitative factors—demand creation, timing, and industry comparables—with qualitative factors such as product offering and management.

Learn how to value an IPO using forward price-to-earnings multiples, set offer price and share count, and assess funding needs, fees, and primary versus secondary offerings.

Compute post-money equity value from forward net income using PE multiples (17.5–25) and apply a 15% IPO discount to obtain price per share and the offer price.

Compute primary and secondary IPO shares, greenshoe allocations, and overallotment using post-money value and offer price to determine post-IPO shares outstanding and allocations.

Explore how to compute IPO deal size, gross and net proceeds, greenshoe, and post- and pre-money values, using primary, secondary shares, and price multiples.

Explore the differences between an ipo and an fpo, including primary versus secondary market fundraising, risk and predictability, regulatory costs, and listing dynamics.

Explore how companies raise capital through IPOs and FPOs, balancing debt and equity financing with instruments like bonds, notes, and commercial paper, and apply IPO valuation techniques.

Learn how an IPO initiates public stock sales, guided by underwriters and syndicates, with roadshows, prospectus, pricing, and regulatory filing before listing on exchanges.

Value an IPO using discounted cash flow, EBITDA, and the comparables method with a P/E ratio. The example models a coffee brand to illustrate assumptions, growth, and outlet-based revenue projections.

Explain how IPO assumptions set capex funding, debt-equity balance, and working capital, then apply depreciation and tax methods to derive valuation and share price.

Learn to read a profit and loss statement (PNL), analyze income, revenue, and other operating income, and project expenses, EBITDA, and growth-driven fundraising scenarios.

Explore how depreciation affects the P&L, compare EBITDA and EBIT, and learn to calculate book and tax depreciation using the straight-line method on machinery and furniture.

Compute depreciation using gross block, accumulated depreciation, and net block across assets. Calculate amortization for intangibles and derive ebit by subtracting depreciation and amortization from ebitda.

Learn how to compute interest on long-term borrowings using average balances and ten-year amortization, and why working capital interest can be zero when net working capital is negative.

Analyze current tax, MAT, and deferred tax in P&L, detailing gross total income calculations from accounting depreciation versus tax depreciation, and the treatment of MAT credits and carry-forward losses.

Learn how to compute cash flow from operations, investing, and financing for fund raising, including depreciation and amortization, working capital changes, capex, and debt and equity changes.

Assemble a complete balance sheet by linking equity and liabilities with assets, detailing shareholders funds, minority interest, and current liabilities, then calculating fixed assets, cash, and working capital.

Perform dcf valuation for ipo by estimating free cash flows to equity from revenue and ebitda, adjusting for depreciation and working capital, then discount with a capm-based rate.

Learn to value ipos with ebitda and pe methods, applying ev/ebitda and pe multiples from base financials. Use peak and average scenarios or comparable-based valuations to triangulate pricing.

Explore FPOs as follow-on public offers, distinguishing dilutive and non-dilutive types, and explain how underwriters and greenshoe options influence pricing and price stabilization.

Analyze ipo fees and expenses, issuer assumptions for class a and class b stock, and fully diluted shares to estimate ipo valuation using p e multiple.

Balance debt and equity to minimize the weighted average cost of capital and maximize returns, and compare IPO valuation methods like DCF, EBITDA multiples, PE ratios, and venture capital method.