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Case
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Reference no. 105-032-1
Subject category: Finance, Accounting and Control
Authors: Pierre Hillion (INSEAD); Aaron Yeo (INSEAD)
Published by: INSEAD
Originally published in: 2005
Version: 06.2014
Length: 32 pages
Data source: Published sources
Topics: Rights offering; Investor relations; Corporate governance; Company valuation; Securities underwriting; Project funding
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Abstract

This case describes the rights offering by Chartered Semiconductor Manufacturing Limited (CSM) in 2002, which was largely judged to be a failure, despite the company receiving the full planned proceeds. The case takes the reader through the rights offering process, and details the 'hiccups' arising from adverse market conditions as well as process mismanagement. It also allows the reader to use actual data provided by several top broker research analysts to conduct a valuation exercise. Other questions addressed include: Does price matter in a rights offering? Are investors rational? How does one gauge the value of a project?
Location:
Singapore
Industry:
Technology (semiconductor)
Size:
USD1.8 billion market capitalisation (as of May 2005)
Other setting(s):
2002
Teaching note
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Reference no. 105-032-8
Subject category: Finance, Accounting and Control
Authors: Pierre Hillion (INSEAD); Aaron Yeo (INSEAD)
Published by: INSEAD
Originally published in: 2005
Version: 06.2014
Length: 5 pages
Data source: Published sources
View full details

About

Abstract

This case describes the rights offering by Chartered Semiconductor Manufacturing Limited (CSM) in 2002, which was largely judged to be a failure, despite the company receiving the full planned proceeds. The case takes the reader through the rights offering process, and details the 'hiccups' arising from adverse market conditions as well as process mismanagement. It also allows the reader to use actual data provided by several top broker research analysts to conduct a valuation exercise. Other questions addressed include: Does price matter in a rights offering? Are investors rational? How does one gauge the value of a project?

Settings

Location:
Singapore
Industry:
Technology (semiconductor)
Size:
USD1.8 billion market capitalisation (as of May 2005)
Other setting(s):
2002

Related

Teaching note
-
Reference no. 105-032-8
Subject category: Finance, Accounting and Control
Authors: Pierre Hillion (INSEAD); Aaron Yeo (INSEAD)
Published by: INSEAD
Originally published in: 2005
Version: 06.2014
Length: 5 pages
Data source: Published sources
View full details