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Business Valuation and Equity Management When Entering the IPO Market

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  • A.B. Tastulekova
  • R.K. Satova
  • U.Zh. Shalbolova

Abstract

The economic independence of any state is the basis of the welfare of the country’s population. Starting from 2011, the Republic of Kazakhstan has been working on the financial stabilization of its core assets by transferring leading national companies to an IPO. Formation and development of the IPO market requires conducting various economic analyses and determining the effectiveness of innovative design solutions involved in this direction. One of such activities is the corporate asset valuation of the enterprise entering the IPO market. As a rule, each asset has its own internal base value, which is estimated depending on the character of cash flows, the rate of their growth and the degree of future risk. As a result of the evaluation, the enterprise will have an idea of the life cycle of the project being invested, a pattern of cash flow will be revealed and a discount rate will be determined in order to determine the present value. At the initial stage of the IPO market formation in Kazakhstan, major national companies with long life cycles possessing a sufficient number of assets were identified as the main participants of the project. To participate in an IPO one should know the basic rules of investment, trade mechanisms and features, as well as the law regulating these issues.

Suggested Citation

  • A.B. Tastulekova & R.K. Satova & U.Zh. Shalbolova, 2018. "Business Valuation and Equity Management When Entering the IPO Market," European Research Studies Journal, European Research Studies Journal, vol. 0(4), pages 875-886.
    • Handle: RePEc:ers:journl:v:xxi:y:2018:i:4:p:875-886
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    References listed on IDEAS

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    Cited by:

    1. Natalia Trusova & Natalia Zakharova & Andrii Lysenko & Inna Kohut, 2022. "Risk-orientated management in the sustainable economic system of united agricultural enterprises," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 347-372.
    2. Petro Dikhtiievskyi & Nataliia Zadyraka & Volodymyr Pashinskyi & Liudmyla Chupryna & Volodymyr Dikhtiievskyi, 2022. "Legal regulation of access to public information on the state of use of natural resources," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 103-123.
    3. Olena Denysiuk & Ihor Svitlyshyn & Iryna Tsaruk & Olga Vikarchuk & Andrii Dankevych, 2022. "Diversification in the enterprises? activities for sustainable development in the agricultural sector," RIVISTA DI STUDI SULLA SOSTENIBILITA', FrancoAngeli Editore, vol. 0(2), pages 85-102.

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    More about this item

    Keywords

    IPO market; equities management; rules of investment; trade mechanisms.;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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