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Initial Public Offering

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Initial Public Offering

Sysorex Global Holdings Corp, a provider of IT services and technologies, is based in Santa Clara California and went public in 2014 at an initial public offering (IPO) price of $6 on April 10, 2014 for 3,333,333 shares (Nasdaq). An initial public offering (IPO) is the first time a private company offers its stock to the general public (Titman). When a global firm, such as Sysorex Global Holdings, decides to go public in order to raise capital funds for projects, many concerns must be addressed. Understanding the role of the investment banker and underwriter, the role of an originating house and a syndicate and how to price the issue most be mastered. In addition, it is important for companies going public to understand the risk involved, what foreign exchange concerns the company’s likely to face and possible ways to mitigate them. Prior to deciding to go public, Sysorex worked with investment bankers in order to determine the best way to raise capital. An investment banker describes both the firm itself and individuals work for it and the investment banker provides three basic functions: underwriting, distributing and advising (Titman). Investment bankers work in financial institutions and are primarily in the business of raising capital for companies, governments and other entities (Investopedia). The role of the underwriter is to assume responsibility of distributing a securities issue to the public. According to Nasdaq, Sysorex Global Holding Corp. used Dougherty & Company LLC and Wellington Shields & CO LLC as its originating house. According to Titman, an originating house is an investment brokerage firm or several investment bankers that manage the underwriting and sale of a new issue of stock to the general public. The syndicate is a group of other investment bankers

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