Raising Long Term Finance

Venture Capital

• High risk and high return profile• Active interest in guiding • Liquidate its investment after 3 to 7 years• Appears synonymous with tech and bio-tech

INITAIL PUBLIC ISSUE

• Benefits – Access to capital– Respectability– Investors recognition / visibility– Opportunity– Liquidity

• Disadvantages– Dilution– Loss of flexibility– Disclosures– Public pressure– Costs

Cost associated to public issue

• Underwriting expenses• Brokers• Fees to manager (investment banker) • Fees for registrars • Printing expenses• Postage expenses• Advertising and publicity• Listing fee

Book building

• Phases in IPO pricing

RIGHTS ISSUE

PRIVATE PLACEMENT

BOUGHT-OUT DEALS

Term loan

• Rate of interest on the basis of credit risk

Bonus shares