| annakin (Little Upsilon) | Saturday, June 21, 2008 - 09:40 am 
Hi, I would like to know how to make a successful IPO.
The last time I made an IPO, the corp's value fell to $1B, while my other state corps are now at $12B.
This corp has $17B in cash, $16B in supplies and makes $400M per month. But it is only worth $1B lol.
Is this normal, should I ride it out? I'm thinking of putting the same corp back on the market. |
| Angus88 (Little Upsilon) | Thursday, June 26, 2008 - 04:48 am
Market value is irrelevant. Its only real use is determine its selling value. The higher the value the longer it has been consecutively profitable.
General idea, don't put corporations with low cash on the market. Don't create IPOs if the market situation (that coloured bar at the bottom of the screen) is adleast half way into the red, if you don't know what your doing. This will usually mean the corporation can gain some momentum of being profitable, meaning the market price should not drop too much so the corporation starts to loose money before it can get salaries and quality up (which help protect against low market price of goods, quality because you can charge more for same amounts of goods, and salaries because higher salaries produce higher production quantities.)
Ride it out. The market is volatile and you shouldn't let a few months losses make you cut and run. |
| JSampsonRulez (White Giant) | Wednesday, July 2, 2008 - 06:56 am
how do you do an IPO just starting out, ive never done one and i want to try it. but i want to make sure i can own alot of the shares so i hold complete control of the company |
| JSampsonRulez (White Giant) | Wednesday, July 2, 2008 - 06:56 am
how do you do an IPO just starting out, ive never done one and i want to try it. but i want to make sure i can own alot of the shares so i hold complete control of the company |
| Zetetic Elench dam Kahveh (Golden Rainbow) | Wednesday, July 2, 2008 - 09:59 am
On the corporation's page, click on perform a public offering near the top.
You're then given a choice to offer existing shares, or issue new ones.
If you offer existing shares, your country is paid for the shares it sells.
If you offer new shares, the corporation gets a cash boost from the share sales.
Whichever you do, chances are your country will continue selling shares until it has a 51% stake in the corp (thus still maintaining control). You can change this by going to Share market > set portfolio targets after the IPO and changing the Target Percentage (of ownership).
The corporation pays dividends on its profits, so if other enterprises and investment funds buy shares, you lose out on some of the dividend money. Public corporations tend to do better that state ones, so this should cancel out. However, if you have an enterprise, you can buy the IPO'd shares with that to maintain control of where the dividend money goes. You can set a target ownership percentage within your enterprise the same way as in your country (say a 60-40 split in ownership). |
| annakin (Little Upsilon) | Wednesday, July 2, 2008 - 10:25 am
thanks guys |
