The “TRX, Inc.: Initial Public Offering” case provides complete coverage of a company’s decision to proceed with an initial public offering (IPO) and the IPO process. The case follows the sequence of events in the formation of the company in 1999 by conducting an initial public offering in September 2005. In addition to raising capital, the IPO box TRX also considers another motivation to go public. At the time of its creation in November 1999, TRX tried to go public, but the collapse of the dotcom boom that followed, the IPO was never completed. In response to the output bag failed, President and CEO of TRX, Trip Davis turned to strategic investors to raise $ 20 million in a convertible bond into shares at $ 11 per share. Although Davis had hoped that strategic investors provide advice and business opportunities for TRX, which never materialized. In 2004, he came to believe that the most important strategic investor, Sabre, Inc. was not working in the best interest of TRX. Thus, the IPO is driven by a dual purpose: to raise money and provide a strategic reorganization of the ownership structure of the company.
by
Susan Chaplinsky,
Kensei Morita,
Zeng Xing
Source: Darden School of Business
21 pages.
Release: September 20, 2008. Prod #: UV1207-PDF-ENG
TRX, Inc.: Initial Public Offering Case Solution
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