Equity Carve-Outs: IPO Strategies

This lecture explores equity carve-outs as IPO strategies, where a subsidiary company offers shares to the public. It discusses spinoffs, capital raising benefits, and stock pricing dynamics. Behavioral finance concepts, like overconfidence and heuristics, are also covered. Case studies on American Depositary Receipts and the 3Com-Palm spin-off provide practical insights. The lecture delves into the impact of market inclusion announcements on stock prices, emphasizing the importance of understanding IPO mechanisms and market behavior.