Floatation Simulation

In the simulation, participants will:

• Analyze the issuing company's financials and growth prospects.

• Value the company using multiple methodologies to establish a defensible price range.

• Craft a compelling equity story for the investor roadshow.

• Interpret feedback and demand indicators from the book-building process.

• Negotiate final offer terms with the company's management.

• Decide on the final offer price, balancing issuer goals with market appetite.

• Manage aftermarket stabilization if required.

• Present and defend their IPO strategy and outcomes.

• Map out the end-to-end IPO process and the roles within it.

• Apply core valuation techniques specifically for a public listing.

• Articulate the factors that influence IPO pricing and initial returns.

• Understand the strategic purpose and execution of investor roadshows and book-building.

• Make informed pricing decisions under conditions of uncertainty and information asymmetry.

• Evaluate the trade-offs between underwriter, issuer, and investor interests.

• Communicate valuation and pricing rationale clearly to clients and stakeholders.

• Build confidence in managing complex capital market transactions.

1. Receive the Mandate Teams are briefed on the client company, its industry, financials, and the current market environment.

** 2. Analysis and Valuation** Participants conduct financial analysis and use simulation tools to determine a preliminary valuation and price range.

3. Roadshow Strategy Teams develop their key investment thesis and messaging for potential investors.

4. Market Feedback and Pricing Participants review simulated investor demand feedback and must adjust their strategy, leading to the critical final pricing decision.

5. Deal Execution and Aftermarket The simulation reveals first-day trading results. Teams analyze their performance based on issuer proceeds, investor returns, and market share.

6. Review and Debrief Instructors lead a discussion linking team decisions to real-world IPO outcomes, reinforcing key learning objectives.

• Who is the floatation simulation designed for? It's ideal for students and professionals interested in investment banking, equity capital markets, corporate finance, and financial advisory roles.

• Do participants need prior IPO or valuation experience? No. The simulation is designed with instructional support, including guides and video tutorials, making it suitable for those with a basic understanding of corporate finance fundamentals.

• How long does the floatation simulation take to complete? The core experience is designed for a 3 to 4-hour session, but it can be adapted into shorter modules or extended into a multi-day project.

• Is this an individual or team-based simulation? It is primarily team-based to replicate the collaborative nature of investment banking, encouraging negotiation and strategy development within groups.

• What financial models are used in the floatation simulation? Participants engage with valuation models central to IPOs, including Discounted Cash Flow (DCF) and Comparable Company Analysis (Comps).

• Is the simulation based on real companies? The simulation uses realistic, carefully constructed company and market data that mirrors the complexity of actual IPO scenarios, though it does not replicate a specific historical deal.

• Can the floatation simulation be customized for our program? Yes. Instructors can adjust parameters like company profiles, market volatility, and the emphasis on specific learning modules to fit course objectives.

• How is a team's performance measured in the simulation? Performance is multi-faceted, assessed on the accuracy of valuation, the effectiveness of the pricing strategy (considering both issuer and investor outcomes), the quality of strategic decisions, and the clarity of team presentations.

• Accuracy and justification of their company valuation.

• Financial outcomes of the IPO.

• Strategic adaptation to market feedback and new information.

• Quality and persuasiveness of their equity story and final recommendations.

• Peer and self-assessment insights on teamwork and contribution.