scholarly journals VALUASI BISNIS PERUSAHAAN PT JAMINAN PEMBIAYAAN ASKRINDO SYARIAH DALAM RANGKA IPO DI TAHUN 2022

2021 ◽  
Vol 1 (3) ◽  
pp. 211-237
Author(s):  
Bunga Mareti Permatasari ◽  
Zulkifli Zulkifli ◽  
Syamsul Bahri
Keyword(s):  
Initial Public Offering ◽  
Fair Value ◽  
Free Cash Flow ◽  
Company Strategy ◽  
Business Valuation ◽  
Book Value ◽  
Share Prices ◽  
Value Range ◽  
Public Offering ◽  
Corporate Actions

In order to absorb the potential of the sharia guarantee business in the future which will grow rapidly, PT Jaminan Pembiayaan Askrindo Syariah with the brand name "Askrindo Syariah" will carry out corporate actions, one of which is an initial public offering (IPO) in 2022. Askrindo Syariah's performance shows an increase in 5 years. However, Askrindo Syariah's business profile, which is mostly high-risk products, shows that the company's performance is not optimal even though it has increased. Accordingly, Askrindo Syariah needs to set a strategy in preparation for the IPO. The purpose of this study was to determine the business valuation of the company's strategy for Askrindo Syariah related to the initial public offering (IPO) plan in 2022. The results of the study show that the fair value range of share prices related to Askrindo Syariah's decision to carry out an IPO in 2022, based on the calculation of free cash flow to equity, the value of the company in 2022 is IDR 2,111,814 per share, while based on the relative valuation the book value is amounting to Rp 2,331,168,- per share. The results of this study can also determine the business valuation in 2025, the value of the company based on calculations using the FCFE method is Rp.2,929,706, - while based on the book value method is Rp.3,383,228,-. To maintain the company's value as projected, Askrindo Syariah needs to implement a company strategy to reach good underwritting quality product

scholarly journals Peran Growth Opportunities, Free Cash Flow, dan Relative Issue Size dalam Reaksi Pasar terhadap Pengumuman Right Issue

The Winners ◽  
2007 ◽  
Vol 8 (1) ◽  
pp. 24
Author(s):  
Synthia Atas Sari ◽  
Hartiwi Prabowo
Keyword(s):  
Initial Public Offering ◽  
Stock Price ◽  
Stock Exchange ◽  
Free Cash Flow ◽  
Final Conclusion ◽  
Growth Opportunities ◽  
Normal Period ◽  
Stock Price Reaction ◽  
Test Market ◽  
Public Offering

Right issue is when a firm announces its plan to publicly offer additional shares of common stock after Initial Public Offering (IPO). The aim of this research are to test market stock price and examine the role of growth opportunities in stock price reaction to right issue announcement. Sample was taking from companies which been listed in Jakarta Stock Exchange and publish right issue from 1998 to 2005. To measure growth opportunities, the companies were divided into 2 groups, growth and mature. This classification using Tobin’s q proxy method (market-book value ratio). The research have final conclusion, that is at right issue announcement in Jakarta Stock Exchange, market give positive reaction and statistically significant, and so in normal period.

scholarly journals A Brief Overview of the IPO Valuation Methods

2020 ◽  
Vol 15 (12) ◽  
pp. 41
Author(s):  
Olga Ferraro
Keyword(s):  
Cash Flow ◽  
Initial Public Offering ◽  
Professional Practice ◽  
Economic Value ◽  
Value Added ◽  
Economic Value Added ◽  
Discounted Cash Flow ◽  
Business Valuation ◽  
Valuation Methods ◽  
Public Offering

The method adopted for pricing in an Initial Public Offering is a key issue in the studies on business valuation. In particular, various researches sought to verify which valuation methodologies are preferable in the context of an initial public offering. The review of the main literature shows that Discounted Cash Flow, Market Multiples, Dividend Discount Model and, even if just to some degree, Economic Value Added are the most popular methodologies in the valuation practice. The comparison among different valuation methods, proposed in the literature and variously applied in national and international practices, reveals the necessity to pay more attention to valuation mechanisms that drive the pricing of the shares to be listed. The topic is linked to the ever more pertinent debate on the use of different methods in professional practice: financial experts and analysts tend, in fact, to compare results according to different estimates.

scholarly journals Does Leverage Constrain Real and AEM Around IPO Corporate Event? Evidence from the Emerging Market

2019 ◽  
Vol 20 (2) ◽  
pp. 354-367
Author(s):  
Sani Hussaini Kalgo ◽  
Bany-Ariffin A.N. ◽  
Hairul Suhaimi Bin Nahar ◽  
Bolaji Tunde Matemilola
Keyword(s):  
Earnings Management ◽  
Initial Public Offering ◽  
Emerging Market ◽  
Order Theory ◽  
Agency Cost ◽  
Free Cash Flow ◽  
Cross Sectional ◽  
Pecking Order Theory ◽  
Public Offering ◽  
The Impact

The article investigates whether Malaysian initial public offering (IPO) firms engage in real and accrual earnings management (AEM) and examines the impact of leverage on the earnings management’s discretionary behaviour of the firms for the period of 2003–2013. The Dechow, Sloan, and Sweeney (1995, The Accounting Review, 70[2], 193–225) cross-sectional modified Jones model was used to estimate discretionary accruals, while Roychowdhury’s (2006, Journal of Accounting and Economics, 42[3]), 335–370) cross-sectional models were used to investigate abnormal real activity discretionary behaviour. The results indicate Malaysian IPO firms engage in real and accrual discretionary behaviour. The graphical presentations of the earnings’ management proxies indicate higher real and AEM for high-leverage firms. Similarly, the multivariate analysis indicates a positive relationship between leverage and earnings management, which is in tandem with the agency cost of free cash flow theory and debt hypothesis. It is also consistent with the pecking-order theory of capital structure. This study suggests that regulatory agencies and standard setters should continue to improve quality of accounting reports in order to protect investors’ invested capital.

Discretionary Reporting of Stock Options by IPO Firms

2005 ◽  
Vol 19 (4) ◽  
pp. 223-236 ◽  
Author(s):  
Joseph D. Beams ◽  
Anthony J. Amoruso ◽  
Frederick M. Richardson
Keyword(s):  
Initial Public Offering ◽  
Stock Price ◽  
Stock Options ◽  
Peer Group ◽  
Price Volatility ◽  
Fair Value ◽  
Employee Stock Options ◽  
Public Companies ◽  
Option Values ◽  
Public Offering

The revision of SFAS No. 123 (SFAS No. 123R, FASB 2004) requires companies to recognize the fair value of employee stock options. In addition, nonpublic companies will no longer be permitted to assume stock price volatility of zero when calculating the fair value of their stock options. This study finds that the zero volatility assumption allowed under the original version of SFAS No. 123 (FASB 1995) resulted in an average estimated fair value of options that was $1.06 (40 percent) less than the fair value calculated using a peer group volatility estimate for firms undergoing an initial public offering (IPO). However, IPO firms that estimated their volatility underreported option values by an even larger magnitude than the group using the zero volatility assumption. Perhaps these firms reported a downward-biased estimate of volatility to inhibit analysts from computing option values using more reasonable volatility estimates. Contrary to the findings for public companies, we find that a large percentage of sample firms issued in-the-money options prior to going public. Following the IPO, only a small portion of firms issued in-the-money options. The concerns regarding recognizing option expense may be less important than the benefits of granting in-the-money options for IPO firms.

scholarly journals MARKET TO BOOK VALUE, FIRM SIZE, AND THE UNDERPRICING OF INDONESIAN INITIAL PUBLIC OFFERINGS

2019 ◽  
Vol 2 (2) ◽  
pp. 75-90
Author(s):  
Marmono Singgih ◽  
Veryantika Putri Pricilia ◽  
Eka Lavista
Keyword(s):  
Regression Analysis ◽  
Initial Public Offerings ◽  
Initial Public Offering ◽  
Firm Size ◽  
Book Value ◽  
Public Offerings ◽  
Initial Return ◽  
The Subject ◽  
Public Offering

The focus of this study is to analyse whether market to book value ratio and firm size determine the extent of initial returnrate of firms making initial public offering (IPO). The subject of the study is all IPO from the period of 2007-2016. There are 173 IPOs used as sample. It uses two measurements of initial retuns, the raw return and the market adjusted return. As documented in many studies, there is evidence that on average the Indonesian IPO experience underpricing. Results using regression analysis show that market to bookvalue ratio and firm size have negative and significant effect on both of the measures for initial return. This finding asserts the importance of understanding the market to book value ratio in the valuation of Indonesia IPOs.

scholarly journals The Delisting of a Company from the Warsaw Stock Exchange as a Result of the Cancellation of the Dematerialisation of Shares – Tender Offer Price vs. IPO Price

2020 ◽  
Vol 54 (1) ◽  
pp. 31
Author(s):  
Sylwia Frydrych
Keyword(s):  
Initial Public Offering ◽  
Stock Exchange ◽  
Theoretical Background ◽  
Share Price ◽  
Tender Offers ◽  
Share Prices ◽  
Warsaw Stock Exchange ◽  
Positive Rate ◽  
Public Offering ◽  
A Company

<p>Theoretical background: The growth in the number of companies delisted from the Warsaw Stock Exchange (WSE), as a result of the cancellation of the dematerialisation of shares, has become a reason for considerations regarding the share price in tender offers addressed to shareholders who have held company securities since the Initial Public Offering (IPO).</p><p>Purpose of the article: The goal of this study was to evaluate whether the price in tender offers of the shares of companies which had finally been excluded from trading on the WSE as a result of the cancellation of the dematerialisation of shares would ensure a positive rate of return for shareholders who have held the shares since this company’s debut on the regulated market of the WSE.</p><p>Research methods: Public tender offers, announced between 2012 and 2018 on the regulated market of the WSE have been analysed. The analysis covered prices of shares of new listings on the WSE and share prices in the tender offers of 213 companies, out of which 55 companies have been excluded from trading on the regulated market of the WSE as a result of the cancellation of the dematerialisation of shares.</p><p>Main findings: The results of the research indicate that more than a half of the shareholders who have held the securities of companies in their portfolio since their debut, have suffered losses after companies have been excluded from trading on the WSE as a result of the cancellation of the dematerialisation of shares. Only 11% of the examined companies have generated more than double profit for investors compared with the issue price during their IPO. This research is one of the few studies on the Polish stock market to the best of the author’s knowledge.</p>

Le Beau Footwear: A Business Valuation Case for a Privately Held Firm

2015 ◽  
Vol 31 (4) ◽  
pp. 439-447 ◽  
Author(s):  
Abol Jalilvand ◽  
John W. Kostolansky
Keyword(s):  
Initial Public Offering ◽  
Return On Investment ◽  
Cost Of Capital ◽  
Private Ownership ◽  
Business Valuation ◽  
Legal Decisions ◽  
Ownership Status ◽  
Public Offering ◽  
Firm Effect ◽  
Privately Held

ABSTRACT The case for Le Beau Footwear, which is based on actual events, examines the financial and legal decisions concerning a privately held Canadian retailer whose leased premises and entire inventory were destroyed by a suspicious fire in 1990. The focus of the case is on determining the monetary value of the lost profits that resulted from the insurer's delays in paying the indemnified amount. Within this context, this case provides a rich and comprehensive example of the application of the accounting return on investment (ROI) and the market-based opportunity cost of capital (OCC) techniques for valuation of a privately held firm. Further, the case demonstrates a sharp example of applying the results from previous studies of initial public offering (IPO) and small firm effect to make valuation adjustments that reflect the retailer's private ownership status and its small size. This case is intended for use in advanced accounting and finance courses in M.B.A., M.S. in Accountancy, and M.S. in Finance programs.

Introduction to Business Valuation

2020 ◽  
pp. 1-23
Author(s):  
Sinem Derindere Köseoğlu ◽  
Saad Salman Awad Almeany
Keyword(s):  
Intrinsic Value ◽  
Financial Statements ◽  
Fair Value ◽  
Firm Valuation ◽  
Free Cash Flow ◽  
Value Drivers ◽  
Business Valuation ◽  
Equity Value ◽  
Different Types ◽  
Valuation Process

This chapter is an introduction to the book and provides basic information to help readers in the following chapters. This book analyzes all kinds of problems and develops solutions in firm valuation process. The needs and purposes of firm valuation are briefly explained. Basic Concepts, such as Cost, Price, Value, Valuation, Evaluation, Free Cash Flow, and different types of value, are explained. Face value, issue price, fair value, intrinsic value, market value, book value, going-concern value, liquidation value, replacement value, enterprise value, and equity value are explained within the different types of value. Then, “financial statements” and “elements of financial statements”, which will form the basis of all valuation approaches, are explained and emphasized. The value drivers for businesses are discussed. Business valuation approaches' general features are given.

scholarly journals Inorganic Strategy Priority and The Company Valuation Analysis of Pt Bank Bni Syariah to Become Buku III Bank

2020 ◽  
Vol 5 (5) ◽  
Author(s):  
Dio Ardana Pramandika ◽  
Uke Marius Siahaan
Keyword(s):  
Initial Public Offering ◽  
Analytical Hierarchy Process ◽  
Fair Value ◽  
Share Price ◽  
Ahp Method ◽  
The Public ◽  
Company Valuation ◽  
Additional Funding ◽  
Public Offering ◽  
Hierarchy Process

PT Bank BNI Syariah with a core capital of 4.4 trillion rupiahs, has a roadmap design to move up to BUKU III bank in 2020. One of the requirements to become a BUKU III bank is to have a core capital of 5 trillion rupiahs. With the current existing core capital, the company needs additional funding to meet those requirements. Inorganic Strategy is considered as the best option to add the company’s core capital. Using the Analytical Hierarchy Process (AHP) method, the author calculates the best possible Inorganic Strategy alternatives for the company, resulting in Initial Public Offering as the best alternatives. Thus, the company valuation is calculated to determine the fair value of the company for IPO. The company equity posture after IPO will be PT. Bank Negara Indonesia, Tbk. (79,95%), PT. BNI Life (0,05%) and public (20,00%). The company offered the share price at Rp 800 per share. Total equity gained after the public offering will be Rp 2,001 trillion, thus the new core capital of the company is Rp 6,4 trillion.

scholarly journals The Effect Of Capital Structure, Earning Management, Profitability, Free Cash Flow And Environment Cost On Firm Value With Dividend Policy As Moderating Variables In Pharmaceutical Sub Sector Companies Listed On The 2007-2019 Indonesia Stock Exchange Peri

2021 ◽  
Vol 5 (2) ◽  
pp. 981-995
Author(s):  
Remilia Aprilia Ginting
Keyword(s):  
Capital Structure ◽  
Earnings Management ◽  
Cash Flow ◽  
Initial Public Offering ◽  
Firm Value ◽  
Free Cash Flow ◽  
Analysis Technique ◽  
Public Offering ◽  
Environment Cost ◽  
Positive Effect

Firm value is one of the branchmark of the success in firm management in its operation so that its customers will trust it. The objective of the research was to analyze the influence of capital structure, earnings management, profitability, free cash flow and environment cost on firm value in pharmacyl companies that carry out Initial Public Offering (IPO) policies for the period 2007-2019. It also tested the variable of dividend policy as moderating variable in this research model.The Population are companies that carry out an Initial Public Offering (IPO) policy for the period 2007-2019. The population of this study was 104, the sample selection method of this study used the purpoive sampling method with a total of 8 companies that met the criteria. The type of data used is secondary data and the data analysis technique used is cross sectional data analysis technique with the help of Eviews 10 software. The results of this study indicate that capital structure and earnings management have a significant positive effect on firm value, while profitability and environment cost have a significant positive effect on firm value. Negative and significant, and free cash flow has a negative and insignificant effect on firm value.

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