Problem:
Can you assist me on what type of IPO should Avaya use - a traditional IPO or an online auction?
Based on your analysis and findings, what would you recommend to the executives of Avaya corporation?
Please explain your reasoning in detail. Please include 2 references that I can revert back to for understanding and clarification.
Some issues to consider in answering the above question include:
i) The type of investors Avaya is likely to attract
ii) The lessons learned from Google and Morningstar from their auction IPOs
iii) Advantages of each type of IPO
iv) Costs and risks of each type of IPO