Successful Initial Public Offering

April 1998 - Record IPO, Stock Symbol: BRCM (NASDAQ)

Successful Initial Public Offering (IPO) - Advance planning - Steve Harmon, May 5, 1998 - Just as 1998 began to look like the year Internet initial public stock offers were waning, a heated up after-market has turned Wall Street and the Web into the hottest show of the season. Leading the pack is broadband chipmaker Broadcom (NASDAQ:BRCM) which finds itself in the center of a cable industry clamoring for its chips. Broadcom (BRCM) jumped from a $450 million IPO to more than $2 billion in market cap. Is this the new Intel? The best performing IPO in California was Ebay, San Jose that grew over 1500%. In Southern California Broadcom led the way with a 385% gain.

Positioning Broadcom Corporation for IPO, April 1998, Irvine, California, Yossi Dashti - Knowledge and experience gained during the preparation of Broadcom for record breaking IPO.



Guideline for Evaluation:

Financial Results: Assets, Back orders, Cost of capital, General and administrative expenses as a percentage of sales, Historical and projected growth rate of sales and earnings, Long-term debt, Profit margins, Receivables, Stockholders' equity.



The Company: Cost of production, Experience and quality of management, Growth opportunity in geographic or technological terms, Industry outlook, Regional or national, Market share, New-product development from conception to production, Percentage of total sales to the largest customers, Raw material suppliers, The scope of the product line as compared to the industry leaders, Years in operation.



Legal Considerations: Environmental issues, Liabilities and lawsuits, National, state or local legislation, whether positive or negative, Patents, trademarks or proprietary knowledge.

Source: Pricing An Initial Public Offering by Charles J. Kaplan, Equity Analytics, Ltd.