IPO Pricing. The following material represents the cover page and summary of the prospectus for the… 1 answer below »


IPO Pricing. The subjoined esthetic represents the secrete page and tabulation of the plan for the judicious notorious aid of the Pest Investigation Control Corporation (PICC). which is going notorious tomorrow delay a determined commitment judicious notorious aid managed by the boarding banking determined of Erlanger and Ritter. Answer the subjoined questions:

a. Assume that you distinguish noman about PICC other than the notification contained in the plan. Based on your distinguishledge of finance. what is your foreshowing for the appraisement of PICC tomorrow"? Provide a shOI1 exposition of why you judge this wil1 happen.

b. Assume that you enjoy diverse thousand dollars to endue. When you get abode from rank tonight. you discaggravate that your supplybroker, whom you enjoy not talked to for weeks, has designated. She has left a communication that PICC is going notorious tomorrow and that she can get you diverse hundred shares at the aid appraisement if you aggravatecome her end foremost man in the mOll1ing. Discuss the merits of this turn.

200,000 shares

PEST INVESTIGATION CONTROL CORPORATION

Of the shares substance tendered hereby, all 200,000 are substance sold by the Pest Investigation Control Corporation, Inc. ("the Company"). Before the aid there has been no notorious exchange for the shares of PICC, and no insure can be loving that any such exchange conquer enucleate.

These securities enjoy not been received or disreceived by the SEC nor has the office passed upon the accuracy or adequacy of this plan. Any representation to the contrary is a criminal enormity.

 

Price to

Underwriting

Proceeds to

 

Public

Discount

Company*

Per share

$11.00

$1.10

$9.90

Total

$2,200,000

$220,000

$1,980,000

·Before deducting expenses estimated at $27,000 and payable by the Company.

This is an judicious notorious aid. The base shares are substance tendered, question to former sale, when. as, and if delivered to and original by the Underwriters and question to laudation of established juridical matters by their Counsel and by Counsel for the Company. The Underwriters retention the proper to delaydraw, annul, or differ such tender and to decline tenders in whole or in part.

Erlanger and Ritter, Boarding Bankers

July 12, 2008

Prospectus Summary

The Company

The Pest Investigation Control Corporation (PICC) breeds and exchanges toads and tree frogs as ecologically trustworthy insect-control mechanisms.

The Offering

200,000 shares of base supply, no par value

Listing

The Company conquer affect listing on NASDAQ and conquer exchange aggravate the  against.

Shares Outstanding

As of June 30, 2008, 400,000 shares of base supply were unappropriated. After the aid, 600,000 shares of base supply conquer be unappropriated.

Use of Proceeds

To finance dilution of list and receivables and open afloat important, and to pay for province club memberships for established finance professors.

Selected Financial Information

(amounts in thousands save per-share axioms)

 

Fiscal Year Ended June 30

 
 

2006

2007

2008

 

Revenues

$60.00

$120.00

$240.00

 

Net earnings

3.8

15.9

36.1

 

Earnings per share

0.01

0.04

0.09

 

 

As of June 30, 2008

 

Actual

This Aid As Adjusted for

Working important

$8

$1,961

Total assets

511

2,464

Stockholders" equity

423

2,376