
ISSUE OF ENTERPRISE’S VALUE AND ITS INCREASE BEFORE IPO. IMPROVEMENT MEASURES IN THE REPUBLIC OF UZBEKISTAN
Akbarali Babanazarovich Uralov , PhD, Associate Professor, Department Of Economics Of Oil And Gas, Branch Of The Russian State University Of Oil And Gas, (National Research University) Named After I.M. Gubkin In Tashkent, UzbekistanAbstract
This paper analyzes the issue of company’s value before business moves to the IPO stage within its lifecycle. Given the contemporary realities, the article reveals its increasing significance in the Republic of Uzbekistan and implemented measures towards this matter. Moreover, the paper exhibits main company valuation approaches and establishes the key indicators that mostly impact on business value within pre-IPO stage. Based on the literature available, it is notable that there exists a big concern of overestimation of enterprise’s value which top management experiences prior sliding a company to IPO. Suggestions are given and include some optimization tools of value management of business to avoid such consequences and more likely correspond to the market expectations and the fair value.
Keywords
Fair Value, Initial Public Offering, Economic Reforms
References
Aggarwal, R., Bhagat, S. and Rangan, S., 2009. The Impact of Fundamentals on IPO Valuation. Financial Management, 38(2), pp.253-284.
Benzinga. 2021. Earnings Calendar as of Nov 15 and Recent Earnings News • Benzinga. [online] Available at: <https://www.benzinga.com/calendars/earnings> [Accessed 15 November 2021].
Bloomberg. 2018. Xiaomi's IPO Raises $4.7 Billion After Pricing on Low End. [online] Available at: <https://www.bloomberg.com/news/articles/2018-06-29/xiaomi-ipo-is-said-to-raise-4-7-billion-after-low-end-pricing> [Accessed 22 September 2021].
Bloomberg. 2019. Wanda Sports Has Year's Second-Worst Debut After IPO Flops. [online] Available at: <https://www.bloomberg.com/news/articles/2019-07-26/wanda-sports-keeps-falling-after-ipo-falls-far-short-of-target> [Accessed 27 August 2021].
Bloomberg. 2020. Xiaomi's Stock Surge a Big Reversal After Post-IPO Struggles. [online] Available at: <https://www.bloomberg.com/news/articles/2020-08-28/xiaomi-s-stock-surge-a-big-turnaround-after-post-ipo-struggles> [Accessed 25 September 2021].
Bochner, S., Avina, J. and Cheng, C., 2016. Guide to the Initial Public Offering. 8th ed. St. Paul, Minn.: Merrill Corp., pp.3-16.
CB Insights Research. 2021. How To Value A Company: An In-Depth Guide To The Business Valuation Process - CB Insights Research. [online] Available at: <https://www.cbinsights.com/research/report/how-to-value-a-company/> [Accessed 22 September 2021].
Corporate Finance Institute. 2021. Initial Public Offering (IPO). [online] Available at: <https://corporatefinanceinstitute.com/resources/knowledge/deals/ipo-initial-public-offering/> [Accessed 21 September 2021].
Debter, L., 2019. SmileDirectClub Gets Chilly Reception In Latest Billionaire-Minting IPO. [online] Forbes. Available at: <https://www.forbes.com/sites/laurendebter/2019/09/11/smiledirectclub-ipo/?sh=fb62b5f6aca3> [Accessed 29 September 2021].
GlobeNewswire. 2020. Wanda Sports Group Company Limited Reports Third Quarter 2020 Results. [online] Available at: <https://www.globenewswire.com/en/news-release/2020/12/01/2137317/0/en/Wanda-Sports-Group-Company-Limited-Reports-Third-Quarter-2020-Results.html> [Accessed 20 September 2021].
Investopedia. 2021. How an Initial Public Offering (IPO) Is Priced. [online] Available at: <https://www.investopedia.com/articles/financial-theory/11/how-an-ipo-is-valued.asp> [Accessed 18 September 2021].
Lex.uz. 2021. PF-4947-son 07.02.2017. O‘zbekiston Respublikasini yanada rivojlantirish bo‘yicha Harakatlar strategiyasi to‘g‘risida. [online] Available at: <https://lex.uz/docs/-3107036> [Accessed 12 September 2021].
Lex.uz. 2021. PQ-4124-son 17.01.2019. Kon-metallurgiya tarmog‘i korxonalari faoliyatini yanada takomillashtirish chora-tadbirlari to‘g‘risida. [online] Available at: <https://lex.uz/docs/-4168220> [Accessed 17 September 2021].
Lex.uz. 2021. 268-son 10.05.2017. Fond birjasida aksiyalarni ommaviy taklifini o‘tkazishni tashkil etish to‘g‘risida. [online] Available at: <https://lex.uz/docs/-3200315> [Accessed 18 September 2021].
Lex.uz. 2021. 358-son 26.04.2019. Fond birjasida aksiyalarning birlamchi va ikilamchi ommaviy takliflarini o‘tkazishni tashkil etish to‘g‘risida. [online] Available at: <https://lex.uz/docs/-4312349> [Accessed 17 September 2021].
Square. 2021. Square Inc. - Financials - Quarterly Results. [online] Available at: <https://investors.squareup.com/financials/quarterly-results/default.aspx> [Accessed 9 October 2021].
Statista. 2021. Company valuation before IPO in the U.S. 2000-2020 | Statista. [online] Available at: <https://www.statista.com/statistics/914614/median-valuation-before-ipo/> [Accessed 28 August 2021].
Sun, Z., 2021. Is SmileDirectClub Stock a Buy? | The Motley Fool. [online] The Motley Fool. Available at: <https://www.fool.com/investing/2020/06/08/is-smiledirectclub-stock-a-buy.aspx> [Accessed 17 September 2021].
U.S. Securities and Exchange Commission (SEC). 2021. Investing in an IPO | U.S. Securities and Exchange Commission: Office of Investor Education and Advocacy. [online] Available at: <https://www.sec.gov/files/ipo-investorbulletin.pdf> [Accessed 15 August 2021].
Walton, J., 2020. When Did Facebook (Meta) Go Public?. [online] Investopedia. Available at: <https://www.investopedia.com/ask/answers/111015/when-did-facebook-go-public.asp> [Accessed 19 August 2021].