Double Exit

Real World Reads – IPO

One key difficulty for many students studying for accountancy exams is to link material covered in lectures and notes to the real world of business. The Real World Reads series will provide students with some interesting articles and resources about topical business stories that link directly to different parts of subjects you will be studying. Relating your studies to the real world not only will make studying the topic a small bit easier (knowing that it is actually relevant for the real world!) but it also provides you some scope to bring in relevant examples to your answers in an exam setting.

Here we will take a look at the recent IPO of Ardagh group on the NYSE;


Ardagh Group’s IPO

Ardagh’s recent IPO on the New York Stock Exchange gives a good insight into;

  • The lengthy process of an IPO (refer to previous failed attempts);
  • Company valuations  (valued at approx €5bln at IPO);
  • The current capital structure in Ardagh and the need for equity capital;
  • The rationale for an IPO (utilising the Ardagh shares as an acquisition currency to fund further acquisitions); and
  • The M&A strategy of Ardagh and how this impacts the funding requirements of the business.

Key Reads:

Irish Indo analysis of IPO 

Ardagh prices $307.8m IPO at upper end of range


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