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Initial Public Offering Related Decisions of Warburg Pincus and EMGs - Case Study Example

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In this study, Initial public offering related decisions are developed by connecting with different aspects of Warburg Pincus and ElectroMagnetic GeoServices (EMGs). Warburg Pincus acquired EMGs from Norway’s state oil company and they continued initial operational activities…
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Initial Public Offering Related Decisions of Warburg Pincus and EMGs
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Download file to see previous pages In the era of globalization, IPOs are a highly influential financial technique that is opted by small and medium-sized enterprises (SME) and newly established companies that require capital for expansion of product or service line. Large private firms are converting into publicly-traded firms in order to use risk-free capital. Firms are using equity capital for avoiding interest rate risk during the period of financial instability. Warburg Pincus and ElectroMagnetic GeoServices case study outlined initial public offering related decisions of the Norwich firm. Warburg Pincus is a globally operated private equity firm who concerned for developing portfolios as publicly-traded companies and mediums of exchange. The small private investment firm acquired Norway-based ElectroMagnetic GeoServices in the year 2004. The managing directors, Jeffrey Harris and David Krieger have encountered three challenges such as the place of listing, amount or valuation and the timing of initiating IPO. 

ElectroMagnetic GeoService's key strengths are seabed logging (SBL), seismic mapping and sourcing hydrocarbon. Jeffrey Harris and David Krieger managing directors of Warburg Pincus planned to make an initial public offering for ElectroMagnetic GeoServices for raising funds that will be helping in developing operational facilities of the Norwich Company (Brealey, Myers and Allen, 2006). The hydraulic activity has been proposed to improve by $100 million that could boost revenue generation by $110 million during 2006 only (Hardymon and Ann, 2007). Furthermore, investments required to implement market-leading technologies of ElectroMagnetic GeoServices. The management was aiming to invest in the undersea rock-formation oil exploration. Drilling activity had shown high-growth characteristics in terms of profits and revenues (Broussard and Vaihekoski, 2012). Typical oilfield services of the company require more investment and publicly trading option which are a beneficiary in terms of lower risk and high availability of funds. According to the managing directors of Warburg Pincus, floating on the NYSE. ...Download file to see next pagesRead More
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