IPO of Aboitiz Power Corporation

Initial Public Offering (IPO)

A company undertakes an Initial Public Offering (IPO) of its shares to investors for listing in the Philippine Stock Exchange. Once listed, it can then be traded (its shares can be bought and sold
in the open market) by investors and shareholders.



WHY DO COMPANIES LIST?


ADVANTAGES OF ISSUING STOCK

1) A company can raise more capital than it could borrow
2) A company does not have to make periodic payments to creditors
3) A company does not have to make principal payments


DISADVANTAGES OF ISSUING STOCK

1) The principal owners have to share their ownership with other shareholders
2) Shareholders have a voice in policies that affect company operations




General Criteria for Admission to listing


A) actual operations for at least 3 full fiscal yrs
B)Min authorized capital stock of PhP 400 Mn of which a min of 25% must be subscribed and with all subscribed shares paid in full
C) management and controlling stockholders must possess integrity and good managerial skills
D)has stability and stature in the industry or in the business community

Thanks for the INFO

"The days' market - June 13, 2007"
1 Comment -

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David Wozney said...
Re: “... the Philippine peso hovered at around PhP 46.54 level to the US Dollar ...”A “Federal Reserve Note” is not a U.S.A. dollar. In 1973, Public Law 93-110 defined the U.S.A. dollar as consisting of 1/42.2222 fine troy ounces of gold.
June 13, 2007 9:31 PM

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