(7 pages of text)
Second Cup, the largest chain of specialty coffee stores in Canada, wants to raise money through an initial public offering in order to pay off the company's long-term debt and take advantage of growth opportunities. Nesbitt Thomson, the investment dealer working on the initial public offering, must decide what the company is worth and how many shares to issue in order to raise $14 million.
To introduce students to the IPO process. They are presented with a company with great potential but at a critical stage in its growth. This case is also useful for studying the implications of the capital structure adopted by the company and of a large amount of funds available for expansion or acquisitions.
Accommodation & Food Services
Canada, Medium, 1993
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