Geneva Steel: Initial Public Offering Case
Journal of Financial Education, Vol 51, Number 3, (SPRING 1996), pp. 82-99
Posted: 20 May 2014
Date Written: Spring 1996
Abstract
The focus of this case is for the students to determine an offering price for the IPO of Geneva Steel. The company was created through a leveraged buyout of an operating facility of U.S. Steel. The case describes the history of the operating facilities and the buyout process. After over two years of successful operations, the owners want to issue shares to the public. The number of shares to be issued has been set, and only the offering price remains to be determined. The case includes information on the steel industry, operating and market data for other steel companies, and historic operating information for Geneva Steel. In addition to addressing the valuation, the case provides an opportunity to discuss the IPO underwriting process and terminology.
Keywords: case, IPO, steel industry
Suggested Citation: Suggested Citation