| Summary: | 碩士 === 國立臺灣科技大學 === 企業管理系 === 99 === As well growth of domestic capital market, Taiwan stock market is attractive to domestic and international corporate investors. The low cost of raising funds in stock market encourages enterprises to go public and helps enterprises to achieve sustainable operation goals.
In order to protect public’s investment, many factors are required before an enterprise can raise funds from stock market. A company is not only required to have healthy financial status and potential growth feasibility, but also required to have underwriter’s guiding to comply with government regulation. A good underwriter also plays an important role to provide underwriting strategies. IPO price and timing are the top priorities considered in the strategies.
Under-pricing of IPO price did help enterprise to achieve the purpose of raising funds, however; this will undervalue enterprise’s value. While a company fits all the conditions required by administration, the timing of IPO now becomes another important topic. A “bear marke” alike environment often brings a new IPO stock negative price trend, and both new or old stock holders shall not be happy with that.
This research through a case study discusses the relationships between companies’ motivation to go public, the choice of timing of IPO, and the determination of IPO price. The case study is a helpful reference for companies to plan for going public.
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