Equity Capital Markets (ECFS991)

This unit will only be offered in Beijing in 2018.

This unit covers core methods for the raising and management of equity capital. In particular, students can anticipate completing the unit with a fundamental working practical knowledge of the processes and core theory that is required to conclude a successful IPO or secondary market equity capital raising. The unit also explores a range of capital management techniques, including share buybacks.

Learning Outcomes:

  1. Compare, contrast and critically evaluate major types of equity capital raisings (both primary and secondary market issuance) in terms of their role in the organisation’s capital strategy, and their costs, risks and benefits.
  2. Understand and apply capital management strategies and techniques, including the role of alternative mechanisms for returning capital to shareholders.
  3. Understand regulatory and market requirements of equity raisings and capital return mechanisms.
  4. Ability to implement major types of equity capital raisings, including IPOs, secondary market offers, block trades or share buybacks. This will cover the process from selection of appropriate method, pricing, legal and regulatory requirements and execution of transaction.

Topics: 

  1. Lecture Slides
  2. ASX Listing Rules – Chapters 1, 2, 7, 9 & 11
  3. ASIC Regulatory Guides – 254 Offering Securities Under a Disclosure Document, 170 Prospective Financial Information, 173 Disclosure for On-sale of Securities and Other Financial Products, 228 - Prospectuses: Effective Disclosure for Retail Investors (available from the ASIC website)
  4. ASIC Share Purchase Plan Class Order
  5. ASX Guidance Note – 1 Applying for Admission
  6. ASX Guidance Note – 11 Restricted Securities and Voluntary Escrow
  7. ASX Guidance Note – 12 Changes to Activities
  8. ASX Paper on Capital Raisings During the Global Financial Crisis
  9. MGSM Paper on Pricing Efficiency in IPOs
  10. ASX IPO Brochure
  11. Takeovers Panel Guidance Note 17
  12. IPO Share Offer Document – MYOB, Dick Smith Holdings
  13. Rights Issue Case Study – Boral (2016)
  14. Hybrid Announcement, Presentation and Terms – PERLS VIII

Prerequisite Units:

Lecturers:

Unit Guides:

Back to the top of this page