TRX, Inc.: Initial Public Offering Case Solution & Answer

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This Case is about IPO, REORGANIZATION

PUBLICATION DATE: September 20, 2008 PRODUCT #: UV1207-HCB-ENG

TRX, Inc. Initial Public Offering Case Solution

The “TRX, Inc.: Initial Public Offering” case offer an all-inclusive coverage of a company’s choice to undertake an initial public offering (IPO) and the procedure of going public. The TRX IPO case also includes thought of another motivation for going public along with raising capital. At the time of its amalgamation in the month of November 1999, TRX tried to go public but in the ensuing dotcom fall, the IPO was never finished. Although Davis had expected guidance and business opportunities would be provided by the tactical investors for TRX, they never materialized. By 2004, he’d come to consider the greatest strategic investor, Sabre, Inc. wasn’t working in TRX’s greatest interest. Therefore, the IPO is inspired by a twofold goal: to raise cash and to provide for a strategic restructuring of the ownership structure of the company.