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IPO Financial Model Overview

The document summarizes key assumptions and calculations for an upcoming IPO, including: - The proposed filing price range of $20-22 per share and number of primary and secondary shares to be issued. - Calculations of fully diluted share counts under different price scenarios and assumptions about stock options. - Estimates of the offering size, underwriting fees, expenses and expected net proceeds across the filing range. - Implied market capitalization, valuation multiples and earnings figures at different price points within the range.

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83 views5 pages

IPO Financial Model Overview

The document summarizes key assumptions and calculations for an upcoming IPO, including: - The proposed filing price range of $20-22 per share and number of primary and secondary shares to be issued. - Calculations of fully diluted share counts under different price scenarios and assumptions about stock options. - Estimates of the offering size, underwriting fees, expenses and expected net proceeds across the filing range. - Implied market capitalization, valuation multiples and earnings figures at different price points within the range.

Uploaded by

spuiszis
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
  • IPO Assumptions
  • Fully Diluted Share Count Matrix
  • IPO Calculations

IPO Assumptions

($ and shares in millions, except per share amounts)

Value

Filing range low


Filing range high

$20.00
$22.00

Primary shares issued


Secondary shares sold
Underwriting discount (%)
IPO discount (%)
Overallotment
Overallotment ("Greenshoe") (%)
Primary allocation (%)
Exercise shoe?
IPO fees & expenses
SEC registration fee
FINRA Filing fee
Nasdaq listing fees and expenses
Transfer agent and registrar fees and expenses
Printing fees and expenses
Legal fees and expenses
Accounting fees and expenses
Miscellaneous

5.500
4.500
6.0%
15.0%

15.0%
100.0%
Yes

$0.0
0.0
0.0
0.1
0.7
3.0
1.5
0.1

Issuer Assumptions
($ and shares in millions, except per share amounts)

Value

Class A common stock


Class B common stock

20.300
26.100

Options strike price


Options outstanding

$20.00
2.900

Issuer 2013E earnings


Issuer 2014E earnings

$70.0
$95.0

Fully Diluted Share Count ("FDSO") Matrix


Options strike price
Options outstanding

$20.00
2.900

1 (shares in millions)

$18.00

$19.00

Potential Range of IPO Prices


$20.00
$21.00
$22.00

$23.00

20.300
26.100
46.400

46.400

20.300
26.100
46.400

46.400

20.300
26.100
46.400

46.400

20.300
26.100
46.400
0.378
46.778

Class A common stock


Class B common stock
5 Total basic shares outstanding
6 ( + ) Stock options
7 Fully diluted shares outstanding
3
4

20.300
26.100
46.400
0.138
46.538

20.300
26.100
46.400
0.264
46.664

$24.00
20.300
26.100
46.400
0.483
46.883

IPO Calculations
Filing Range
Midpoint

($ and shares in millions, except per share amounts)

Low

High

Offering price per share

$20.00

$21.00

$22.00

Shares offered
Primary shares issued
Secondary shares sold
Base deal shares issued/sold
Overallotment primary shares
Overallotment secondary shares
Total overallotment
Total shares issued/sold

5.500
4.500
10.000
1.500

1.500
11.500

5.500
4.500
10.000
1.500

1.500
11.500

5.500
4.500
10.000
1.500

1.500
11.500

Pro forma shares


Existing Issuer FDSO
( + ) Primary shares issued
Pro forma Issuer FDSO

46.400
7.000
53.400

46.538
7.000
53.538

46.664
7.000
53.664

$200.0
30.0
$230.0

$210.0
31.5
$241.5

$220.0
33.0
$253.0

$20.00
(1.20)
$18.80

$21.00
(1.26)
$19.74

$22.00
(1.32)
$20.68

Shares

Offering Size
Base deal
( + ) Overallotment
Total offering size
IPO Discount & Fees
Underwriting discount
IPO price per share
( ) Underwriting discount (6.0%)
Net IPO price per share
Offering expenses
SEC registration fee
FINRA Filing fee
Nasdaq listing fees and expenses
Transfer agent and registrar fees and expenses
Printing fees and expenses
Legal fees and expenses
Accounting fees and expenses
Miscellaneous
Total expenses

$0.0
0.0
0.0
0.1
0.7
3.0
1.5
0.1
$5.5

$0.0
0.0
0.0
0.1
0.7
3.0
1.5
0.1
$5.5

$0.0
0.0
0.0
0.1
0.7
3.0
1.5
0.1
$5.5

IPO Proceeds
Gross primary proceeds
( ) Underwriting discount
( ) Expenses
Net primary proceeds
Valuation
Market capitalization

$140.0
(8.4)
(5.5)
$126.1

$147.0
(8.8)
(5.5)
$132.7

$154.0
(9.2)
(5.5)
$139.3

IPO valuation
( + ) IPO discount
Fully distributed ("FD") valuation

$1,068.0
160.2
$1,228.2

$1,124.3
168.6
$1,292.9

$1,180.6
177.1
$1,357.7

2013E earnings
Implied 2013 IPO P/E multiple
Implied 2013 FD P/E multiple

$70.0
15.3x
17.5x

$70.0
16.1x
18.5x

$70.0
16.9x
19.4x

2014E earnings
Implied 2014 IPO P/E multiple
Implied 2014 FD P/E multiple

$95.0
11.2x
12.9x

$95.0
11.8x
13.6x

$95.0
12.4x
14.3x

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