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Services > Initial Public Offerings (IPOs)
As part of our previous assignments, CENAK has prepared valuations for IPOs. Simply defined, an IPO is a private company's first sale of stock to the public. Because we at CENAK do not have any vested interest in the actual IPO value such as an investment bank, we are especially well positioned to provide an independent second opinion and valuations. In our experience, the typical IPO process has the tendency to result in inflated valuation expectations. On the one hand, the company going public is interested in achieving maximum proceeds from the IPO; on the other hand, the underwriter is competing with other investment banks in regard to being the lead bookrunner for the IPO. Consequently they are motivated to present valuations that may be overly optimistic. We at CENAK provide an independent valuation opinion that is not influenced by fees based on the value of the IPO, as we are not competing with other banks over the lead underwriter role.
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