Tribes in India Essay Example for Free

Tribes in India Essay India is the home to large number of indigenous people, who are still untouched by the lifestyle of the modern world. With more than 84.4 million, India has the largest population of the tribal people in the world. These tribal people also known as the adivasis are the poorest in the country, who are still dependent on haunting , agriculture and fishing. Some of the major tribal groups in India include Gonds, Santhals, Khasis, Angamis, Bhils, Bhutias and Great Andamanese. All these tribal people have their own culture, tradition, language and lifestyle. This enables the tourist to get an insight into many different cultures at the same time on the tribal tour to India. Santhal tribes Santhals are the third largest tribe in India. They are mostly found in the states of West Bengal, Bihar, Orissa, Jharkhand and Assam. They belong to the pre- Aryan period and have been the great fighters from the time of Britishers. Munda Munda tribe mainly inhabit in the region of Jharkhand, although they are well spread in the states of West Bengal, Chhatisgarh, Orissa and Bihar. Munda generally means headman of the village. Hunting is the main occupation of the Mundas tribe. Khasi Khasi tribe is mainly found in the Khasi Jaintia hills in Meghalaya and in the states of Punjab, Uttar Pradesh, Manipur, West Bengal and Jammu and Kashmir. They forms the large part of the population in the state of Meghalaya Angami Angami tribe belongs to the extreme north eastern part of the country, in the state of Nagaland. The total population of the Angamis is around 12 million. They are quite popular their woodcraft and artwork. Sekrenyi is the main festival celebrated among the Angamis in Nagaland. Bhils Bhils are popularly known as the bow men of Rajasthan. They are the most widely distributed tribal groups in India. They forms the largest tribe of the whole South Asia. Bhils are mainly divided into two main groups the  central or pure bills and eastern or Rajput Bhils. Bhutia Bhutia tribes are of the Tibetan origin. They migrated to Sikkim around 16th century. In the northern part of the Sikkim they are known as the Lachenpas and Lachungpas. Bhutias forms 14% of the total population of Sikkim. Losar and Losoong are the main festivals celebrated tribe.

Physics of Dipnetting :: physics dip net netting

The Physics of Dip Netting Introduction to Dip Netting Dip netting for salmon in the Copper River is a lot of fun but is also a lot of work.ï ¿ ½ During the summer months salmon will leave their home in the ocean and travel upstream in the Copper River to spawn in its many tributaries.ï ¿ ½ Near the small town of Chitna the Copper River flows through a narrow canyon which greatly increases the speed of the river.ï ¿ ½ This makes it harder for the salmon to swim upstream.ï ¿ ½ However the canyon also creates back eddies near the shore in which the river will actually flow the opposite direction.ï ¿ ½ This is good and bad news for the salmon.ï ¿ ½ Good news because the back eddies are flowing the direction the salmon want to go which makes their trip a lot easier.ï ¿ ½ And bad news (from the salmons point of view of course), it makes the salmon easier to catch because the water is flowing the ideal direction for dip netters as shown in the pictures below. ï ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½ Notice that the back eddie makes it really easy for the dip netter.ï ¿ ½ If there was no back eddie the current would push the net the other direction, which makes dip netting a lot harder. The Physics The physics of dip netting is really quite simple.ï ¿ ½ All a person has to do is find a back eddie with a nice constant current and hold the net underwater in the hopes a salmon will swim into it.ï ¿ ½ The physics then becomes a static equilibrium problem which means that none of the parts are moving in any way either in translation or in rotation (applies only to reference frame used) (Halliday 307).ï ¿ ½ This is illustrated in the picture below. The dip net pole can be compared to a lever of class 1 and the lever principle can be applied, similar to the applet at http://www.walter-fendt.de/ph11e/lever.htm.ï ¿ ½ As stated in the applet from the Contemporary College Physics Simulation Library a lever is in balance if the total left side torque is equal to the total right side torque.ï ¿ ½ Applying that statement to the picture above the person must apply a much greater force on the pole in order to maintain torque equilibrium because the distance from the pivot point is much less than the distance from the force of the current to the pivot point.ï ¿ ½ This can be expressed mathematically. ï ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½ F1D1 = F2D2.ï ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½Ã¯ ¿ ½ ï ¿ ½(where F is each force, and D is the distance each force is from the pivot point)

Allen Ginsberg Essay

Allen Ginsberg was born into social confusion. He was jewish, gay, and his mother was a communist. Yet outside of this, he was also birthed within a generation that wallowed in chaos, both morally and emotionally. Before them had come the Industrial Revolution, which had begun the murder of â€Å"unity or wholeness† in American society; assembly lines and the breakdown of the workplace into â€Å"distinct and separable parts† had fragmented both the individual and the family. Yet it was the bomb that truly brought the deafening crush on American psycha, minimalizing mechanical wonders and becoming â€Å"the first true â€Å"human† leap in the intelligent understanding of how to control and shape the environment (Henrikson xi). However, to Ginsberg and others, nothing was closer to the anti thesis of the concept of human. Their parents had numbed themselves in order to adapt to the depression and two world wars, forcing them to rationalize the reality of post-war America with apathy and materialism and the empty values of consumerism. Ginsberg refused to believe this was the way of the world and began to write about a new generation who had placed new definitions in place of old notions that no longer applied. He and other writers began a To Allen Ginsberg, the problem was that in society the existence of the individual in isolation was naturally â€Å"more real† than society in general, as â€Å"collective society has an awesome control over people that transcends their individual wills.† (Merril 3) The bomb then was a symbol of this control, essentially bounding people to a future under fear, under which they would strip themselves of their purely human emotions in order to cope with the day. In a world â€Å"where mainstream television told you how to be and Mcarthyism told you what not to be†, Ginsberg believed the individual’s only answer was only looking inwards oneself where they couldn’t reach through the boundaries of externals (Wooley). His age would be on a spiritual quest, but to embark on it they would need a new religion for a new day; modern religion could no longer do as â€Å"good and evil and evil seemed increasingly inadequate in a world of science fiction turned fact† (Ziegler 172). The beat therefore found their religion in Zen Buddhism for one central reason: both sides of good and evil were embraced in â€Å"oneness† for the individual in the meditation where spontaneous flashes of images and sights might come ( Merill 7). In this religion, nothing the human being was impulsed to perform could be wrong as what was right was instinctual and natural. To sustain their humanity in a world gone mad, man had to embrace every emotion he felt as â€Å"exploiting these feelings..[led them] to new levels of truth† (Merill 2). This was the concept of the ying and the yang ; taking on all forces no matter how panicked or manic in coherence with nature. It is in this particular religious ideology and other forms of explicit verbal attacks that characterize Ginsberg’s first acknowledged work, Howl. The content of the book leaves no mystery to why it became so controversial; Ginsberg refuses to deny any schema of thought, most noticeably in the sexuality department. If had he had censored these thoughts, it would have equated to admitting that sexual behavior was unhealthy and unnatural; â€Å"this expression [was] the denial of shame itself† and represented the embrace of his full humanity (Merill 2). But to truly understand the work, one has to imagine themselves in the context of the Six Gallery group of San Francisco poets it was performed before, as its recitation was the first of many performances that would eventually make Ginsberg â€Å"largely responsibible for the movement of the poet from the printed page to the reading halls (Schumaker 635). One must imagine the situation , because it is in the visual that one can get the feeling of it , of the beat of the music, of the beat of the scene, of the swelling chests and rising spirits of â€Å"culture [surviving] despite the presence of an oppressive national political environment† (Schumaker 214). The mood can only be fully set if the voice of Ginsberg is imagined in a somewhat nervous tone, unsure of the response he will garner as he exalts the individual and their inherent potential for goodness outside of the society , saying â€Å"Holy! The soul is holy! The skin is holy! The tongue and cock and hand and asshole holy! Everything is holy!† The â€Å"boos, hisses,[claps]† of the crowd must be invoked upon the introduction the deity of death known as Moloch who is a direct contrast to the pure human existence (Schumaker 217) The nervousness and dread should be present alongside his description: â€Å"Mind [of] pure machinery..whose blood is running money..whose fingers are ten armies..whose ear is a smoking tomb†¦.demonic industries!!..granite cocks!!†¦monstrous bombs!† Moloch is responsible for taking away the instincts of the people that would bring them happiness as he â€Å"bashed open their skulls and ate up their brains and imagination† (Henrikson #). Yet among this distinction of conflict, the presentation of unity and aforementioned â€Å"one-ness† of Zen can be seen in Ginsberg’s portrayal of optimistic youth and its convergence with drugs and various arrays of emotions. Words are infused with the surge of the crowd as there are â€Å"the angelheaded hipsters burning for the ancient heavenly connection to the starry dynamo in the night†, similar to â€Å"a lost battalion of platonic conversationalists jumping..off windowsills off Empire State†, and equal to those â€Å"who vanished into nowhere Zen New Jersey†¦ [loning it] through the streets of Idaho seeking visionary Indian angels†. These descriptions exalt the individual who absorbs his uncertainty and doubt and lets it take him anywhere in his hunt for spirituality, in an ethereal surreal showing of human purity described in a gritty confessional style latent with acid tripped tongues between lips and roses on the ends of declarations. They also know no form, as Ginsberg says each is â€Å"a breath†, a flurry of emotion representative the human exhaling against â€Å"conventional society† and its brutal and constraining tendencies as represented through Moloch (Merill 23) Ginsberg essentially takes the amalgamation of drugs, obscenity, explicit sexual imagery and â€Å"hysterical/naked† tendencies of his people and compares them to the oblique characteristics of Moloch and the â€Å"boys sobbing in armies† by his side, massive like red revolution but subverted to a nationalistic mantra, cut like concrete on warm warring flesh wishing they could feel like the battleground if it had a heartbeat with organs cut away at three crosses to celebrate the mythic religion when Jesus the baby birthed in love consideration and carnal compassion was felt by his mother; of the two, the blatant and overt obscenities of the steel machine were much more Frankenstein-esque in offensiveness and horror than the words of the skin, of frantic nude protests laced like bluesy Saturday night agony tunes. To bring America to this reality, Ginsberg uses the painful recognition of â€Å"seeing the best minds of his time ..destroyed by madness†, emblematic of his lover Carl Solomon being institutionalized after suffering from the noxious consumerist tones of nuclear America (Schumaker 208). Taking all of madness in within himself, the poet summarizes his response to all of this with the single line â€Å"FUCK AMERICA AND ATOM BOMB†. It is symbolic of his overall explicit nature in protest, such as his later poetry which boasted of â€Å"cocksucking† in front of French cathedrals and standing out in aristocratic French scenes penning Death to Van Ghohs Ear (Campbell NUMBER). Ginsberg not only felt this came naturally but felt it was as the new necessity. America needed to be shocked in order to be allured to these works or poetry, which went deeper than blatant sexuality; emotion energy sex love mysticism were all on the same plane of internal mental thought. Avant garde display was now the means to the end of snapping sensually the industrialized human machine, over-fixated on temporary addiction to a set of materialistic values that came with carnage caved in at the ends of seventeen year old love letters where the blood started to run in the rain and the words and signatures were incomprehensible but the dog tags shined like Sunday morning breakfasts baked in sweet bread and kisses from Grandpa Cookie. It was this unconventional fragmented style of verse that caused mothers to cry when kids read about freedom and a world not burgeoning with the moral and physical suicides of a thousand possibilities in a nuclear haze. They’d imagine such lines would be a threat to a child, who might become like Dylan acid trip epics with Quinny dosing and skys opening for brief seconds where you can taste and feel â€Å"it†, the thing that makes us â€Å"mad† and â€Å"burn burn burn† with hope at the edge of tongues (Dylan)(Kerouac ). Folk heroes proclaimed that children would become â€Å"beyond their command†, the command of authority figures etched in the physical and moral apathy of the bomb. People were listening. With Howl, Ginsberg set down a formula for later protest songs from the likes of Joan Baez :the obscenities of the state should be followed by the uncontrollable and instinctual emotional reactions of the individual. Such muses from the heart and mind about the existence of the new sort of rain coming down and the boy who disappeared in it could be easily invoked in the depths of the subconscious stalled in meditation. As poet Michael Mcclure said after Howl’s first recitation, â€Å"none of us wanted to go back to the gray, chill, militaristic silence-to the land without poetry-to the spiritual drabness† (Schumaker 215). The apoclypic visions of Ginsberg’s The Fall of America and the America that â€Å"LOOKED FROM ITS GRAVE†were all that lay behind, seen in the influence of Dylan when he too speaks about the end. Blowin in the Wind used lines like â€Å"How many years can a mountain exist before it’s washed to the sea† while â€Å"The times are a changin'† versed conclusions like â€Å"Admit that the waters around you have grown and accepit it that soon you’ll be drenched to the bone.† Ginsberg and the beat were aware of this â€Å"point of no return†, a mad run from the end that could come at any time (Schumaker 215) They were asking for the desperation, for the land in front of the setting sun was the only direction they needed to go However, the land had heavy industry walls of red white and blue to block the spread of this so called disease of internal and moral freedom. These obstacles had mouths running with blood crossed with eyes of pristine clandestine censorship to protect the impressionable youth of the next generation from being swallowed by hysterics, as it needed their limbs to fight the great world wars in the bowels of death and destruction that reigned with every passing sunset in the East and in the West. This hypocrisy was essentially what brought Ginsberg into full fledged politics, while others like Kerouac drew the line at the beat representing only â€Å"self sufficiency†Ã¢â‚¬  and â€Å"freedom from moral interference† (Schumaker 180). Much of this can be due to the inherent political struggles he found in getting his work into the public sphere. When Howl was about to be released for the second time, â€Å"they arrested a counter assistant at City lights for peddling literature likely to corrupt juveniles, and also arrested Ferlinghetti for publishing it.† (Campbell193). Ginsberg therefore was one of the first writers to be constantly backed by the ACLU in â€Å"open showdowns against what was and was not obscene†, not only during Howl but later in the group publication of the drugged up Big Table # 1 (Schumaker 255 , 317). To Ginsberg, this might have been a sign of the government trying to quell the influence of writing that would inflame the masses, similar to the repression of the ideas of the Burgeois revolution through strong state centers in the aristocratic France of the 19th century. But what was more was that the prophetic frenetic man saw lunacy in the fact that the artist was releasing pure human instincts in his musing, feelings which although pure, had to be recited in bland grave like versions such as â€Å"the censored is holy!† (Schumaker 254). His work Kaddish, a trying poem about the death of his mother, was an explanation of this affront . â€Å"Listening to Ray Charles blues shout blind on the phonograph† , Ginsberg praises the ability of Charles to withstand â€Å"uncontrollable agony† by keeping â€Å"within the limits of structured rhthm†. Replacing â€Å"censored† with â€Å"skin† in Howl severely hampered the rhthm of the piece, as missing one part of a language of heartbeats and paranoia encased in syllables was like losing a leg in the moral internal marathon; such a gaping wound could lead to a loss of the entire feeling of the poem. Without the unity, the â€Å"one-ness†, the recited work could not produce the same flash of imagery and light that had occurred, similar to Kerouac’s sight of a woman that reminds him of his mother; â€Å"frozen with ecstasy on the sidewalk..a complete step across chronological time into timeless shadows† (Kerouac 172). These â€Å"estatic moments† were what made the spiritual search worthwhile and kids of the mystical mad crazed road hoped that when their moment came, all of these previous moments of light would converge. POPULUSIST ADD HERE Now forceably emersed in the political scene, Ginsberg delved further into politics with his war against the byproducts of age of hate that could not be vanquished with napalm. Particular awareness should be given to his use of blatant contrast to evoke irrepressible feeling. In â€Å"Plutonian Ode†, he draws a â€Å"parallel between the mythological Pluto and the destructive power of the element that received it’s name from the God.† (Schumaker 629). Lines such as â€Å"I dare your Reality..I turn the wheel of Mind on your three hundred tons.. My oratory advances on your vaulted mystery† are the polar anti-thesies of the beauty of the â€Å"sparrows waked whistling through marine Street’s summer green leafed trees.† Protesting such atrocities of nature by nature by meditating on train tracks bound to deliver nuclear material, the recitation of Plutonium Ode would be needed inas his defense, adding parts to it spontaneously like â€Å"breathing silent Prisoners, witnesses, Police- the stenographer yawns into her palms† Sunflower Sutra is very much the same, written he was traveling with Kerouac and viewed a sunflower which was being afflicted with the waste that came as trains passed, its wheels unaware of the â€Å"indignity† it offered the poor flower (Schumaker 632). The subsequent contrast he painted was versed in the lines â€Å"we’re not our skin of grime, we’re not a dread black dusty imageless locomotive, we’re all beautiful golden sunflowers.† In this description, Ginsberg felt like he was taking up the â€Å"whitemanesque celebration† of becoming America through telling a lucid moment which could apply to a majority of Americans. Dylan picked this up better than anyone, evident in his verses describing â€Å"a young child beside a dead pony† and the†white man who walked a black dog† in â€Å"The Times..† Even keener contrast appears when he muses â€Å"I change my no pets allowed sign to a home sweet home sign and wonder why I haven’t any friends† (Dylan) This social conscious and use of contrast gave the poet singer the â€Å"whitmanesque†¦I am America† perspective where he could speak for men who weren’t even of his own color. â€Å"Hurricaneâ €  was the epitome of this, Sunflower Sutra Voice represents the spirits, if not actual experiences, of his readers. â€Å"It occurs to me I am America† 219 even though un American â€Å"whitmanesque celebration of self â€Å" â€Å"gone to seed and suffering the indignity of the discarded refuse† â€Å"they came upon an old, battered sunflower, grimy from the passing trains we’re not our skin of grime, we’re not a dread bleak dusty imageless locomotive, we’re all beautiful golden sunflowers Ginsberg had given the ideology of protest in Howl with natural offense against the grisly gashed abuses of the state covered in gauze and dead presidents. He had experienced the machinations of the war nation as nymphetic Greek realities which varied in degrees of â€Å"apocalyptic reckoning† undergone in hazy highs under hallowed homages hallucinating of American populistic deities of Whitman-esque form invoked under the beauty of the common land . However, it was Jack Kerouac and â€Å"On The Road† who exposed suburban insanity on the edge of skinless pointless existences and the consequent worshipping of the road that took one away from those invisible developments and commuter fathers. It follows the base set by Ginsberg, as its focal character Sal Paradise set off through America as he had this â€Å"feeling that everything was dead.† (Kerouac 2) In addition, Zen and its absorption of uncertainty and an array of unexplainable feelings appear throughout the book. But like Ginsberg, Kerouac implies that these adjectives can only be positive. The â€Å"insanity† that comes from living on the road is a â€Å"saving prescence†, and the more Sal embraces it with his road mate Dean Moriarity the more the â€Å"spirit [is uplifited] with its access to the wonderment and wildness of life† (Henrikson 176). In contrast, a return to Times Square reveals a people that are â€Å"grabbing, taking,giving,sighting,dying†, reflective of the futility of American behavior during the American time, as the heart was traded over in exchange for monotonous complacency with steel hands and sultry scents of capitalism’s carnival. To react to such a scene of such pre-planned monotony, Kerouac wrote in a style known as spontaneous prose which entailed descriptions of long line. It was based on images that were observed and the subsequent recording of sounds and emotions related to that moment, all unleashed in the spirit of a honest confessional that acknowledged every thought without censor, in the vein of Ginsberg and Howl. A perfect example is seen in Dylan’s novel Tarantula, in the lines â€Å"jack of spades – vivaldi of the coin laundry – wearing a hipster’s dictionary† and â€Å"it is 5:31-the rain sounds like a pencil sharpener (Dylan).Each line epitomized the crazed memory of the sounds of be-bop and jazz like a man â€Å"blowing a phrase on his saxophone till he runs out of breath , and would be â€Å"without consciousness†, flowing with images until â€Å"final revelation of exhaustion brought an end† (Merill 45). The â€Å"energy† that is given off by each â€Å"soul-seeking line therefore seems like enough â€Å"to hold back the world’s onrushing moral and human decay (Henrikson 176). Alliteration was a staple of Kerouac, and many credit him with its creation and see it reflected in Dylan’s â€Å"A Hard Rain’s A-Gonan Fall†, although the instinct to put words together like â€Å"a black branch with blood† ,†seven sad forests† and a â€Å"dozen dead oceans† seems like a natural inherent impulse in litearature. ( However, like the nature of the verse, sustaining such a crazed personally analytical lifestyle requires the dedication to constant moving, embodied in the way Kerouac would shout â€Å"Go!† when Allen would read his poetry (Schumaker 215). With pauses in life or writing, there would be a pause in the search for spirituality of â€Å"it†, or as Dean says, the journey to the â€Å"magic land at the end of the road† (Kerouac NUMBER). This is all reflected in the last chapters at the end of the road in Mexico revealing the hauting images of â€Å"shawled Indians watching us from under hatbrims and rebozos† who â€Å"didn’t know that a bomb had come that could crack all our bridges† (Kerouac number The road had come to an end for now and therefore the reality of life was in that image stark naked Indian old mystic land, rooted in the emptiness of man’s new capabilities over the days where mystics howled at the skies dancing with red faced gods Fundamental Paradox of Buddhsm All experience is essentially emptiness; that purity and absence are one. (Foster 62). To collaborate on this political and literary endeavor, the icon of Bob Dylan entered Ginsberg’s life, a man who had already been heavily influenced by the Beat. The folk hero had the world revealed to him during Howl, but this latent influence was only spawned to action when Dylan first read Kerouac’s â€Å"Mexico City Blues.† The long line outpouring of feeling based on flashing images and spontaneous events caused Dylan to drop out of school as â€Å"it was the first poetry that really spoke to [him]† in a natural purely Earthly sense. CITATION The musician saw this same spontaneity in Ginsberg when he viewed his improvisational poetry, which was like â€Å"working without a net† and releasing the crazed random feelings he felt from the public and the atmosphere in words (Schumaker 555) . Dylan was enthralled by the process, one that he had obviously attempted in order â€Å"to assume a rough-edged, made up on the spot feeling on his albums.† (Schumaker 555) the next months Eventually, beat politics came to the same point which had threatened Aunt Molly Jackson and the coal miners; un-American ideas were associated with red. Beatnik was a play of words off of the disloyal notion of the Russian†Sputnik†, while the beat generation film by MGM boasted of a â€Å"rapist on the run† for a main character (Schumaker 6. Even worse was a ploy off of was a play Being â€Å"out there† and unloyal to America, Beatnik was a ploy off of the Russian wonder â€Å"Sputnik†. Even worse was the â€Å"false consciousness of hip† which plagued Kerouac the more he heard words like â€Å"crazy† and â€Å"wigged† in scenes as if people thought the repetition of them could bring out the â€Å"burning burning burning† (Campbell 246). Vexner said â€Å"the culture of dissent was a hot commodity†, as if the Beat were selling the idea of sex and anarchy to a world that was starving for it. CITATION Like Mike Seeger and the Lost City Ramblers, Kerouac and the beat needed to re-examine their roots and tried to analyze what and who it meant to be â€Å"beat†, ignoring all mutated concepts of the beatnik and its subverted image. However, Kerouac one day â€Å"hated them† colllectively, but switched his position come next morn, where he was confessing he â€Å"loved them† only to come to the conclusion when asked again that â€Å"he was becoming paranoid† (Campbell 250). Yet in this critique of themselves the Beat forgot to analyze a few elements that had made their image easy to exploit. The first is that when they were called â€Å"to moan for man†, few realized the energy it took to keep up such a lifestyle. The fact that they pose no answers to an incalcitrent society outside of this bewailing of emptiness and internal discovery made their journey a disjointed and dismembered one; the beat’s endless internal revolution during crazed trips in On the Road only lead back to conformist society with the realization of the death of America in the haunting mystic Indian scene Dean and Sal experience. circular. All of the hope of the convergence of all of those aforementioned estatic moment where everything rushed forward was cut off slashed at the knees like Vietnam massacres upon the lack of the realization of â€Å"it†. Depending again on these personal distortions to lead them back to estatic moments, the Beat almost relied too much on the self. Their feeling that their prose was a superior form of nature really did spark a level of narcissim that reflected poorly. Kerouac’s mantra became â€Å"you’re always genious†, proclaiming lofty phrases such as â€Å"Once God moves the hand, to move back and revise is a sin† (Schumaker 261). What he had forgotten was that PURITY YADDA, and that eventually the emphasis on him just swallowed the man in the desperation for drink in Satori and his search for â€Å"a relative (literally any relative)† demonstrated the demise of the man that constantly depended on the hysterics of the situation (Merill 77). Ginsberg on the other hand had tendencies to create poetry where everything would be â€Å"contained in the vertical figure I† which would lead to statements such as â€Å"I want to be known as the most brilliant man in America.† 261, 262 The fragmented style of poetry that â€Å"bordered on apocalyptic knowledge† was just too much for some, even too much for Ginsberg himself who was â€Å"tired of being Allen Ginsberg† (Campbell 192). Many who could not connect with this age or this feeling wondered what gave these men the right to proclaim themselves as â€Å"phrophets† or â€Å"holy maniacs† when all they did was speak in a version of English that they thought was superior in its absence of the comma. Few realized that the backlash against grammar was due to the fact that the period destroyed the delicate rhythm of works like Kaddish , which would cause one to spiral back to the boundless agony that the perfect balance of poetry embraced. Like Dylan says , some were like â€Å"D.A.R woman [who] flies off the handle. looks at jack. says â€Å"in some places you’d be arrested for obscenity† she doesn†t een hear the band..she falls down a sidewalk crack† (Dylan ) If one couldn’t embrace the beat of the scene, the crazy wigged out mantra which dictated the path of the man, then they’d never know. They’d point out the beards and the bodies spread across ma ttresses on each other and the heroin needles and the staircase of marijuana smoke that supposedly led these gloats to â€Å"higher realization.† In Dylan’s movie Renaldo and Clara, Ginsberg is representative of the father and Dylan the son. It is a relationship of giving and taking between the folk hero and the beat, a representation of what Ginsberg and Kerouac did for Americana. brought Dylan took in the outpouring of words and feeling and exposure of â€Å"the full heart† that caused him to quit school in a spontaneous moment. He acquired Kerouac’s class consciousness GO BACK and the love for the capture of â€Å"gawky awkward beauty of the individual eccentric citizen† like Dean Moriarity in words and in American travels, reflected in words such as the â€Å"the motorcycle black Madonna two-wheeled gypsy queen and her silver studded phantom lover† he writes about. The protest inherent in Howl is taken into his soul, alongside the absorbtion and reflection of various unexplainable feelings in an unexplainable time. However, he essentially adds an extension to the beat movement, removing t he aspects of the beat that confused many parts of society who were still too numbed to come to grips with these bearded men. Songs like Blowin in the Wind took Ginsberg’s art of contrast and brought it full circle; these protest songs leaned more towards the finding of the ultimate answer. Other pieces like Hurricane evoke images from NAME DO THIS SHIT TOMORROW. However, Dylan sounds more like every man in Hurricane , like the every voice of Peter Paul and Mary, because of his humbleness and reluctance to put himself above the common man, something the beat had trouble doing feeling they had divine potential to change the face of thinking in itself. In every sense Dylan is the beat, from his wild descriptions of jazz and hitch hiking in his novel Tarantula to his manic performances thriving off of the emotions of the environment to his celebration of drugs sex and wild wanderings of youth. The spot where Dylan and Kerouac left off, frenzied and genius and incomprehensible to those who could not get â€Å"it†, was the place Dylan took up. The spoken word long line tradition and ithat Ginsberg could only cross halfway across the gap was bridged by Dylan, with memories of Kerouac’s inspiring prose driving him. The Zen of it all , of all the nuclear protest, all the civil liberty, all the cries for a sympathetic America become one with the combination of these three. Their memory is like a burning mystic sign that has no form, only emotion, bright enough to reinvigprate the young masses in every generation to the crazed motion and the crazed search and the frenetic fraticness of the freedom of sensuality with the keenness and sharpness of political reality like a goddamn shard that cuts us at the arm just to prove we still bleed . As long as it burns, the land will breath even under the lack of life in the H-bomb oxygen starved skinny era. As long as it burns, the hills will rise and fall with the pure schitzophrenic sanity of the wind, an echo that just whispers search on the end of our hope stricken ears against the fear ridden nuclear wet dreams of bodies sexed and eyes hallucinating vexed and the fallout of a demoralized Patriot and its Acts of jingoistic nuclear tendencies. When Dylan said Ginsberg needed to get out on the open road of the tour â€Å"to wake up America†, he meant that he wanted his spirit to ride through the skeletal suburbs warning the kids of the inhumanity and callousness stalking the land. I hear his voice and and see their protest so well, like â€Å"Blood writ in Blood†, haunting my daytime dreams with hazy invocations of what we truly can be. Knowing that there is a generation who also feels the same burning in the center of the heart gives me strands of hope that somehow we can overcome the same inhumanity in this age of faceless terrorism that shows no distinction between Am erica and the West. With a tear off the edge of the holy cheek, emblematic of the disunity of our feelings, these men push through our insides to assure us these expressions are what will take us whole. POPULUSIST EDGE OF FOLK TATPRETTY FLOWER POETRY Works Cited Campbell, James. This Is The Beat Generation London : Secker and Warburg, 1999. Henrikson, Margot A. Dr. Strangelove’s America Los Angeles : University of California Press, 1997. Merill, Thomas F. Allen Ginsberg Boston : Twayne Publishers, 1998. Schumaker, Michael. Dharma Lion New York : St. Martin’s Press, 1992. All enamoured with some aspects of the drug culture , labeled as family haters and communist hippies and , the movement began to waver at the end parallel with a lot of the demise of rock stars when coming under controversy and assault by mainstream America. Kerouac became a drunk high off his own lines and Ginsberg moved onto relatively less successful social scenes in rock and roll and the clash.

Study On The Essence Of Initial Public Offering Finance Essay - Free Essay Example

Sample details Pages: 24 Words: 7101 Downloads: 3 Date added: 2017/06/26 Category Finance Essay Type Research paper Did you like this example? The essence of an initial public offering (IPOs) is simple it is the first public sale of the shares of a company aimed at raising capital. Three main participants in the IPO process are (1) the issuing firm, (2) the investment bank underwriting the offering, (3) and the investors. Most companies have found a certain window of opportunity to take their shares public. Don’t waste time! Our writers will create an original "Study On The Essence Of Initial Public Offering Finance Essay" essay for you Create order This means that the market conditions and the anticipated valuation of the company are favorable at the time to take the stock to the public equity market. It is critical to prepare for that window, and understand how the IPO process works. Underwriting is the process through which investment banks raise capital from investors on behalf of the corporations that are issuing securities. This is a way of selling securities and bonds to investors. A syndicate of banks take on the risk of distributing these securities. This paper investigates the initial public offering process and underwriting process with examples of two Estonian IPOs Arco Vara AS and Olympic Entertainment Group AS. The analysis tries to get an answer to the question of why these IPOs turned out to be so different from each other. 2. IPO Process 2.1. Directives and Regulations in EU In European Economic area the financial market is regulated by four directives which are published by European Parliament and Council. These directives are: the Markets in Financial Instruments Directive (MiFID) the Prospectus Directive the Market Abuse Directive the Transparency Directive. The European law states that a Directive has to be transposed into national law. MiFID is considered to be the cornerstone of European Commissions Financial Services Action Plan. It covers almost all tradable financial products with the exception of certain foreign exchange derivatives and commodity, freight, climate, and carbon derivatives. The companies are authorized and regulated in the country where they have their registered office or head office. Once a firm has been authorized, it can use the MiFID passport to provide services to customers in other EU states. In addition, the firm must categorize clients as professional clients and retail clients, as retail clients h ave an increased level of protection. The categorization must be based on clear procedures. The companies must publish the prices, volumes and timing of all trades in listed shares, even if executed outside of a regulated market. The company is also responsible for taking all reasonable steps to provide the best execution for orders. The best possible result is not limited to execution price, but also includes cost, speed, likelihood of execution and settlement. The Prospectus Directive regulates access to the market by prescribing the principles for drafting a prospectus covering any offer of securities to the public. A single passport enables companies making an offer to use one prospectus throughout the entire European Union. Its made easier by the requirement of translating the prospectus to English. The Market Abuse Directive is ment to ensure the integrity of financial markets of Europe and to enhance investor confidence. It contains the general framework principles rela ting to market manipulation and insider dealing. It defines and prohibits both forms of market abuse and provides for a number of preventive measures such as the prompt disclosure of inside information, management transactions and safeguards regarding the impartiality of investment research. The Transparency Directive is meant to harmonize the provisions of national laws on periodic and ongoing requirements of information for issuers of securities to ensure a higher level of protection to investors throughout the European Union. The Transparency Directive requires listed companies to issue annual and half-yearly reports and quarterly management reports for only the first and third quarters. The persons responsible for these reports have to be noted in these. 2.2. Reasons for Going Public A few reasons for why companies go public are (1) to rise capital to expand operations, (2) to increase liquidity of the company, (3) to increase stock capital, which can be used to make acquisitions, and also to compensate management and employees whether through higher salaries or in the form of stock options. The first reason is to raise capital for expansion into new territories or markets. Being public is associated with and demands credibility and accountability. The second reason would be the sale of the shares of the company as founders and the existing shareholders want to trade their shares for cash or other traded stocks (also referred to as exit strategy). The third possible reason could be the expansion of the company either by merger or acquisition. Getting more money into the company allows the company to finance takeovers or mergers with other companies. Also being public allows the company to merge with others who want to become public without going throug h an IPO process (referred to as reverse merger). 2.2.1. Issues in Going Public There are a number of issues that the issuers management must cope with. One of the issues that may arise from an IPO is a conflict between management and current shareholders who may be wary of having their participations diluted and allowing new investors to acquire enough shares to gain power over the board of directors. In the case of single-tiered corporate governance structures, this refers to the board, while in two-tiered corporate governance structures this refers to the supervisory board. A second possible conflict may arise due to shareholders perception that management and other insiders want to cash in their stock options as they have inside information that the IPO is overpriced or that the owner-managers of the entity want to embark on an exit strategy. 2.3. IPO Timeline The actual IPO process takes about three to five months starting from the day the company decides to go public until it receives the proceeds from the offering. Financial consultants help with reporting issues and accounting throughout that period. They also keep the company from getting into trouble. For example, the financial statements must be prepared in accordance with generally accepted rules. This financial consultant or investment bank is also the one that is underwriting the offering, alongside with the other investment banks that form a syndicate. An example timetable of the processes of taking a company public can be seen in Appendix 1. 2.3.1. Preparation Phase In preparation phase the lead manager analyses the companys strategy and business plan, after which the shares positioning is fixed i.e. the reason why an investor would be interested in buying shares. The most labor consuming part of this stage is the legal, financial and business audit in the company. The public offering prospectus is drawn up on the basis of the audits. In the preparation phase, the lead manager also arranges a preliminary share evaluation, using discounted cash flow analysis, comparative ratio and other valuation methods. During the quiet period There are certain things that the companys management can and can not say or publish. During this time, management is strictly bound to the information contained in the prospectus. Anything, including speeches, press releases, brochures, advertisements, talking to your neighbors about the offering, just about anything could be construed as releasing inappropriate information. After the quiet period, the potential interest among institutional investors is ascertained. Possible problems related to the companys share positioning are pinned down in the course of the preliminary presentation. Possible share price ranges becomes clear from the feedback from professional investors. Meanwhile, in co-operation with the Financial Supervision Authority, which is responsible for supervising public offering registration a dialogue is established with the stock exchange. A marketing campaign is also prepared. Usually the duration of the preparation phase is two to four months, but it may take longer. 2.3.1.1. Registration Process A carefully crafted Registration Statement is required to be prepared by accountants and lawyers. This requires detailed information about: Business product/service/markets; Risk Factors; Company Information; Officers and Directors; Audited financials; Proceeds Use (How are you going to use the money); Identification of your principal shareholders; Related party transactions. After the registration is made, it is submitted to the Securities and Exchange Commission and various other regulatory agencies for their detailed review. If this process is completed, the management presents a road show to the companys stock broker, who sells the stock to public investors. Then the proceeds should be invested wisely to enhance the value of the stock. 2.3.2. Offering The public offering is registered with the Financial Supervision Authority and the offering is announced. There is usually no public discussion about the offering before the offering announcement, as there is no certainty that the offering will take place. This is followed by the subscription period, which usually lasts for 2 weeks. At the same time, the managing body of the company carries out a road-show, introducing the companys strategy, financial situation, competitive advantages etc. At the end of the subscription period, the lead manager collects the interests shown by retail investors interests and the buy orders made by professional investors during the course of the directed offering in order to determine aggregate demand. Based on the full volume of demand and the prices offered by institutional investors, the company decides between a public and direct offering (in case this is not predetermined) and fixes the price. The issuer, selling shareholders and transactio n lead manager sign an underwriting agreement, according to which the lead manager is obligated to guarantee cash to be received for the securities, if any investor should withdraw their interest to buy. The decision to use overallotment options is also taken. This is an agreement between the lead manager, selling shareholders and the issuer, whereby the lead manager is entitled to deliver more shares in the offering than originally planned (usually 10-15% of the planned transaction volume). The overallotment option is used in case the offering is oversubscribed. Within the following 3-5 days, the shares are transferred to investors accounts and the share is listed on the securities exchange market and trading begins. 2.3.3. Price Formation By the moment the public offering is announced the issuer together with the lead manager have decided on the range of the final price. According to the book-building method, price is based on indications from professional investors, i.e. what price the professional investors are ready to pay and how much they are ready to buy. Estimating the given information (both price and amount) of aggregate demand of the offering and the number of investors participating in the demand (investing prospect and integrity), the company together with the lead manager determines an equilibrium price, for which all investors can buy the securities. Internationally, the book-spread method is the most widely used, because it takes investors opinions on share price into consideration, helping to reduce price fluctuations on the direct secondary market. Alternatively one could use auction-based price formation, according to which the highest price at the auction determines the price. Such price for mations have not been used in Estonia. 2.4. Underwriting Underwriting was first practiced in the seventeenth century in connection with the shipping ventures. The leading ship merchants of London were used to get together in Lloyds Coffee House to make their mutual business. In time, the custom to share the risk of venturesome voyages among various merchants was rising. Each of them agreed to stand for a fixed share of the loss or to obtain proportionate share of the profits. The agreement was passed around to each merchant, and who agreed wrote his name under the contract. That is where the term underwriting comes from. As is known, the term was primarily associated with the distribution of insurance risks, although when applied to the bond and securities issues, it also distributes the risk of failure. Therefore the essential idea is the same. 2.4.1. Importance of Underwriting Importance to the Corporation The advantages of this agreement to a company are well worth a large sum of money. After the issue has been underwritten, the issue is a sure success to the corporation. They may proceed to finance whatever project from the freshly raised capital. There is no annoying and costly waiting time when the securities are being sold. It is in a nature of many new businesses that time is an important factor for making them successful. For example, if a new factory being built in order to deal with certain contracts, or if efforts have been made in order to prevent competition, it can be fatal to the project when it was set up later after all the stock or bonds are sold. Second very important advantage is that the underwriter ensures success in raising the total amount of capital demanded. Frequently any amount less than the total amount would be a burden rather than strength to the corporation. Therefore it is the underwriters concern to raise the capital and if they fail to do that the n they have to pay up the difference from their own capital. Underwriting agreement carries with it the advantages that go into all the other arrangements, under which the banking house agrees to market the companys securities. The company will benefit from the specialized experience of the bank, and thus the risk of a serious error in the form or the price of new security is minimized. Importance to the Investor Not only does the company benefit from the underwriting agreement, but also the buyer has its advantages. First, the fact that the syndicate has been formed in first-class banking houses is essentially a guarantee that security is sound. Another advantage is the greater security of insurance against the buyer of the same events, which could harm the company because it must be remembered that at the time the buyer becomes the owner of a bond or a stockholder of the company, she begins to share his good or bad luck. If a corporation, therefore, has been damaged by dragging out the sale of a new security issue over a long period of time, or by bringing out the security issue, which ultimately is not completely disposed of, the buyer is one of the sufferers. It is, therefore, in his preference that the issue should be underwritten, and therefore ensured its success. 2.4.2. The Underwriting Syndicate Originally the idea of underwriting consisted of risk sharing among several merchants. This remains the same for todays underwriting. It is true that the word is often implemented by agreement between the company and a bank, where the bank is willing to take over a block of securities at a fixed price. This type of transaction may be better to be called a sale or a contract of sale not the underwriting contracts. But such an arrangement where only one bank is involved, it is virtually unknown except to cover small size issues. Usually, however, the initial contract has been made between the company and one banking houses, and later the lead manager distributes the proportions of risk and profit between other banking houses. All of these houses, working together, thus form a syndicate. Most major banks and financial houses make these practices work in harmony with each other. There are two reasons that make it preferable for a lead manager to join a significant number of syn dicates rather than put out a smaller number of transactions in which it would take all the risks and all the profits themselves. The first and obvious reason is to minimize risk. Wrong step in a syndicate will not be disastrous, but given the failure of good size issue if only one house was concerned, it might not only tie up enough capital to wreck the house, but it can also wreck your reputation, which might be an even greater asset to the banking house. Another motive to participation in a syndicate is that it allows the bonds and brokerage firms to offer their clients a well-diversified list of securities. General retail security merchant should be able to provide to the customer any securities that the customer may want. 2.4.2.1. Syndicate Agreements There are four different types of agreements between the underwriting syndicate and the company. Possible other variations of these basic types could be found. The first is when the company can sell the issue themselves and the syndicate may simply be to ensure that the entire issue is sold in a certain period of time at a minimum price. For example, the company is to sell an issue of $1  000  000 6% bonds. Syndicates may agree that it would the bonds left unsold at the end of the year with a special price of $90. The underwriting syndicate receives a commission of 2-5% for making this agreement. If the issue can be successfully sold, the syndicate would collect and share their commission. If the issue was unsuccessful, the syndicate has to take over the unsold balance with the agreed price and dispose of it. This type of arrangement is now uncommon except in cases where the company has given its shareholders subscription privilege, but fearful that the offer is no t taken away entirely. Second is where the banking house may enter into an agreement with the company to sell a block of securities and is allowed later to transfer them to other banking houses to share the risk and profit, by forming a syndicate. The Corporation, however, does not have dealings with a syndicate, as such, but only the original underwriter becomes the lead manager of a syndicate. The third type is when the syndicate may be formed before signing a definitive agreement with the company and the agreement may be directly between the company and the syndicate, although the management of the entire transaction and the actual sale of securities may be in the hands of one banking house, which has taken the initiative. This banking house carries out the sale of securities and does not distribute to the other members unless the sale is wholly or partially unsuccessful. The fourth type of agreement is between the underwriting syndicate and the issuing company. The secu rities are distributed to all of the members at the same time in proportion to their participation. Each banking house is expected to operate independently in selling of their proportion of the issue. This is probably the most common agreement type, and the most useful for handling large issues. It is clear from the above brief description that the term underwriting is used in different ways. This is in fact often difficult to see the difference between the actual underwriting of securities and just buying a block of securities. Even if the entire security issue is taken over by one bank and the agreed price is paid for this issue, it is still mostly referred to as underwriting. Whatever the type of syndicate is, there is always a common feature: the leading management role is always in the hands of the banking house that organized the syndicate. 2.4.3. Community of Interest Among Underwriting Houses When one of the investment banks gets a good agreement with an excellent opportunity of profit, others will usually be invited to be the members of the syndicate agreement. In this way, they are all more or less taking part in all significant underwritings. There are, of course, no formal agreement on this, but it is implicitly understood that if one allows another banking house to join a profitable issue, the benefit must be returned as soon as possible. This arrangement is well understood in many cases at least in the Wall Street district, and probably also in other centers. The banking house which has made an agreement with a company will just distribute the shares as it considers best and shall notify each participant to create a syndicate. An important result of this community of interest arrangement is that it removes the time one of the leading banking houses in keen competition. This is a relatively small matter whether one house or another company has negotiated with a syndicate and becomes the active control, because in any case essential to take part in a syndicate of houses and a fair share of the profits. This community of interest arrangement has an impact to the competition. It removes the keen competition among the leading banking houses. Therefore it is not that important whether one or another banking house carries through the negotiations with the issuing corporation and becomes the lead manager of the syndicate, because in any case each of the important houses will participate in the syndicate and get a fair share of the profits. 2.5. Underpricing Underpricing can be the positive average abnormal return from an IPO from buying stocks in the IPO and after they start trading in the secondary market selling them right away. Underpricing is the difference between the offer price and the first days closing market price. It has been observed that underpricing is an almost universal feature of the IPO market. In the study by Loughran, Ritter, and Rydqvist (1994), the authors show that underpricing appears in almost all IPO markets in the world. 2.5.1. Why Underpricing? There are a couple of reasons given why underwriters underprice IPOs. Generally, these reasons are not mutually exclusive. Underpricing two dominant theories are asymmetric information theory and signaling theory. Rock [1984], a pioneer in asymmetric information theory, suggests that the asymmetry in the IPO process itself causes underpricing. Famously coined as the winners curse Rock proves that in order to gather interest of uninformed investors, the firm must offer a discount to the price of shares. Signaling theory proposed by Allen and Faulhaber [1989], implies that high quality firms underprice their shares raise the quality of their company. This theory reasons that the companies are optimistic about the future and want to leave a good taste in the mouth for investors so if they decide to do a secondary offering the investors will act through their good memories from the first offering. This theory was confirmed experimentally by Jagadeesh, Weinstein and Welch [1993] when they showed a positive link between the cost of the IPO and secondary offerings. Therefore means that in order to ensure a successful future deals, companies and underwriters underprice the IPO. 3. Analysis 3.1. Definitions 3.1.1. Liquidity Analysis The Current Ratio, defined as current assets divided by current liabilities, has been used as measure of liquidity. Many analysts acknowledge that, if the ratio value remains below 1, it may indicate that the company has or will have liquidity problems in the upcoming periods. 3.1.2. Leverage Analysis The Equity Ratio is an indicator of the degree of financial leveraging i.e. the relationship between equity and assets. If the equity to asset ratio is 60%, then the liabilities to equity will equal 40%. 3.1.3. Profitability Analysis Return on assets (ROA) is a measurement that shows the relationship between average assets and profits. Return on equity (Equasion 3.1) shows the amount of net income returned as a percentage of shareholders equity. The increase in equity ratio is expected to produce good results for shareholders of the company as long as the company earns a rate of return on assets that is higher than the interest rate paid to creditors. Equasion 3.1: Return on Equity (ROE) Gross Profit Margin shows the relationship between cost of goods sold and net sales revenue. A high gross profit margin indicates that a business can make a reasonable profit on sales, as long as it keeps overhead costs in control. Net Profit Margin shows how much profit a company makes after financing costs and taxes. 3.2. Overview of Tallinn Stock Exchange The only regulated securities market in Estonia is the NASDAQ OMX Tallinn. A common electronic trading system allows the listed companies to gain access to a host of capital resources and also exchanges members, mediating securities transactions of the investors. INET and SAXESS trading systems of OMX Nordic Exchange are used in NASDAQ OMX Tallinn. As of May 2005, these systems are also used in Latvia, Lithuania, Finland, Sweden, Denmark, and in Norway. The electronic Estonian central securities register and pension fund register is administered by the Estonian CSD. They concern with the payment of dividends and interest, arranging of shareholders general meetings and provides various services related to securities. The Estonian CSD also keeps the register of all public limited liability companies operating in Estonia, numerous private limited companies, funds and companies debt obligations. The register includes all Estonian private and legal persons securities accounts. 3.2.1. Economic Situation The factor that had the most influence on the financial results of NASDAQ OMX Tallinn Group on the year 2008 was the slow-down in trading activities and falling share prices, caused by the downturn in the international financial markets. The operating revenue of the NASDAQ OMX Tallinn Group (together with the Estonian CSD) decreased by 7.8% to EEK 65 million in 2008 (in 2007, EEK 70.5 million), while the operating revenue of the NASDAQ OMX Tallinn Stock Exchange amounted to EEK 22.3 million (in 2007, EEK 27.4 million). The equity capital of the Group was EEK 83 million at the end of the period (in 2007, EEK 85 million) and the consolidated net profit for 2008 amounted to EEK 20.4 million (in 2007, EEK 28.9 million). (NASDAQ OMX Tallinn Group, 2009) As seen from Appendix 2, the OMX Tallinn index has been falling since the fourth quarter of year 2007. At the end of 2008 the index had fallen about 70% from the end of 2007 and is moving closer to the value level it had in the beg inning of 2000s. 3.3. Overview of Companies 3.3.1. Arco Vara AS Arco Vara group is a real estate developer and agent in Baltic countries. It is undergoing a CEE (Central and Eastern Europe) expansion and is already present in Bulgaria, Romania and Ukraine. Their main activities are property development, consulting, investment management, civil and environmental engineering. For the first time the company sold their shares to the public on 21 June in 2007. The company was founded in 1992 as a real estate agency. In 1996, the first development project was launched in Tallinn and next year they expanded into Latvia. Currently, Arco Vara group is based in five countries with 20 offices in Estonia, Latvia, Lithuania, Bulgaria and Ukraine. The Group employs over 400 people. Their revenues and change of revenues can be seen from Figure 1. Arco Vara groups activities can be divided into three divisions: construction division; development division; services division. Services Division of Arco Vara group is located in all countries they operate in. Services offered include brokerage of real estate, appraisal services, real estate consultancy, property management and comprehensive real estate consulting services. In addition, the services division is engaged in the management of the two real estate portfolio. Development Division of Arco Vara group is experienced in the development of residential and commercial areas. Projects include apartment buildings, semi-detached houses, private houses, land and multi-functional commercial spaces. Development process involves many areas and their core competence lies in the ability to manage the whole property development process from beginning to end. Construction Division of Arco Vara Group is engaged in general contracting, construction and environmental construction. Over 40 years experience in the field, the main objective is to achieve a state of division with the highest quality and most environmentally friendly company, offering integrated solutions in consultation with the planning and design for both commercial and residential customers. Figure 1: Revenue, Revenue growth and Net Profit for Arco Vara AS Source: Annual reports, calculations based on annual reports 3.3.2. Olympic Entertainment Group AS Olympic Entertainment Group is the largest casino entertainment company in the Baltic States and one of the most rapidly developing companies in Eastern Europe. Olympic Entertainment Group AS is the ultimate holding company of the group, through what the strategic management and financing is being done. Local casinos are operated by local entities, including the Olympic Casino Estonia AS in Estonia, Olympic Casino Latvia SIA in Baltic Gaming AS Latvia, and the Olympic Casino Group Baltija UAB in Lithuania, Olympic Casino Ukraine TOB in Ukraine, and Olympic Casino Bel IP in Belarus. In Estonia, Latvia and Lithuania, the non-core operations, such as bars are separated from casinos operations and are managed by specialized entities. The company sold their shares to the public for the first time on 23 October in 2006. The Organizations work in Estonia, Latvia and Lithuania are certified according to ISO 9001 international quality requirements. The Revenues of Olympic Entertainment Grou p can be seen from Figure 2. Figure 2: Revenue, Revenue growth and Net Profit for OEG AS Source: Annual reports, calculations based on annual reports 3.4. Analysis of Public Offerings 3.4.1. Arco Vara AS Lead manager for the IPO of Arco Vara was Skandinaviska Enskilda Banken ABs London Branch and AS SEB Enskilda was jointly the manager. According to the Emission Prospectus, Arco Varas IPO size was 34  450  000 ordinary shares, net proceeds from were expected to be approximately EEK 1  372 million, and the total cost of listing was approximately EEK 66 million. Arco Vara was planning to invest the net proceeds from the IPO in new real estate projects and development mostly in Bulgaria, Romania, and Ukraine. In addition, it is planning to develop already existing housing and business real estate in Estonia and Latvia. In the prospectus, it was said that some of the proceeds might be used for the development and growth of other sectors of the company, to pay back preexisting debt, or for other general business purposes. Financial statement information for Arco Vara is in Appendix 3. According to the Current Ratio, Arco Vara was not in a good position before the IPO having a low, below 1, ratio. Quick Ratio (also known as the Acid-Test Ratio) is fluctuating from 0.2 to 0.5 at different years before the IPO and shows very bad liquidity to the company. Equity Ratio indicates the leverage to investment in operations. Leverage is defined as borrowed capital. Arco Vara had a ratio of 39.7% in 2005 and 32.1% in 2006, which can be seen from the Table 1 also. After IPO, equity capital from all of the assets was 53.4% for Arco Vara. Arco Vara had a low Return on Assets (ROA) before going public. Their ROA for 3 years before going public was at range from 8.5% to 11.7%. After IPO the ROA for Arco Vara was 7.5% and the next year, 2008, it was -38.3%. Return on Equity (ROE) shows the amount of net income returned as a percentage of shareholders equity. Arco Varas ROE for the years before IPO were 26.9% and 31.5%. After IPO the ROE for Arvo Vara was 14.2% for 2007 and -74.5% for 2008. Revenue growth had a little slowdown in 2006 right be fore the IPO, but the year of the public offering they had a 50% growth of revenues. In 2008 they had a negative growth of -9.3% caused by the cooling down of the real-estate market. Gross Profit Margin indicates the relationship between net sales revenue and the cost of goods sold. A high Gross Profit Margin indicates that a business can make a reasonable profit on sales, as long as it keeps overhead costs in control. Arco Varas Gross Profit Margin was 24.7% in 2005 and 27.8% in 2006. After IPO the margin stayed almost the same in 2007 but the next year, in 2008, it fell -53.2%. Net Profit Margin shows how much profit a company makes from investing into its operations. In 2005 and 2006 Arco Vara had Net Profit Margins 24.5% and 44.9% respectively. After the IPO it was 32.4% in 2007 and -175.8% in 2008. Their Net Profit Margin is very sensitive to the changes in the economy and in the demand of real-estate. It is also reflected in the Net Profit Margin of 2008. Table 1: Fin ancial Ratios of Arco Vara 2005 2006 IPO 2007 2008 Equity Ratio 0.39 0.32 0.52 0.36 ROA 9% 12% 8% -38% ROE 27% 32% 14% -75% Revenue Growth 36% 2% 50% -9% Gross Profit Margin 25% 28% 25% -53% Net Profit Margin 24% 45% 32% -176% Source: Annual reports, calculations based on data from annual reports In Figure 3, the price movement of Arco Varas stock is shown. As can be seen the price started falling right away after the IPO. One reason for Arco Varas stock price fall might have been the poor work of underwriters as market makers. Underwriters were supposed to create trades and manipulate the market for the price to go up in the beginning. Arco Vara did not have that classical IPO where at first the price would rise for some time, also creating a possibility for exit strategy, and after the market makers have stopped, the price would start to fall. Figure 3: Arco Vara stock p rices and volume of trade Source: NASDAQ OMX Baltic 3.4.2. Olympic Entertainment Group AS Lead manager for the IPO of Olympic Entertainment Group was Hansapank with a co-lead manager LHV Financial Advisory Services. IPOs size was 14  000  000 ordinary shares, where net proceeds were expected to be approximately EEK 1  038 million, and the cost of listing approximately EEK 24 million. The primary purpose of the Offering is to attract additional capital to finance the further expansion of the group in Estonia, Latvia, Lithuania, Ukraine, Belarus, Poland and other Central-Eastern European countries. Such additional capital will allow the Group to maintain its strategy of aggressive geographic expansion and facilitate the opening of new casinos in the existing and new markets as well as the acquisition of other operators or their existing casinos. Financial statement information for Olympic Entertainment Group is in Appendix 4. Olympic Entertainment Group had a high equity ratio already before the IPO. It was 63.1%. After the IPO it was 89.8%. Ret urn on assets pre-IPO were 28.5%, which showed a slight upwards movement, although it was relatively high already. After the IPO, return on assets decreased to 24.8%. Before IPO the return on equity was 42.2% and post-IPO it was 30%. Revenues were also growing at a high rate 41.6% in 2005. As seen from the Table 2, net profit margin and other margins rose before public offering, which made the IPO even more promising. The asset base of the company almost doubled from 2004 to 2005. Considering all the facts presented in the prospectus and the financial statements for prior years, the IPO looked promising. As can be seen from Figure 4, it was successful investment during the six months after the IPO, with stock prices rising from EEK 90 to almost EEK 180. A possible explanation for this movement of the stock is the lock-up period lasting about 6 months, after what some of the owners and underwriters might have sold a large amount of stock. Table 2: Financial Ratios of Olympic Ente rtainment Group 2004 2005 IPO 2006 2007 Equity Ratio 0.75 0.63 0.89 0.86 ROA 25% 29% 25% 15% ROE 33% 42% 30% 17% Revenue Growth 33% 42% 90% 51% Gross Profit Margin 62% 64% 62% 61% Net Profit Margin 21% 24% 24% 15% Source: Annual reports, calculations based on data from annual reports Figure 4: Olympic Entertainment Group stock prices and volume of trade Source: NASDAQ OMX Baltic 4. Conclusion From the analysis of the prospectuses the author concludes that the motives to go public were similar for both of the companies. They were planning to use the proceeds to invest to widen their market share behind the borders and to geographically expand. Financial data did not show good signs for Arco Vara because firstly the company did not have enough liquidity in their assets. Also the equity ratio was too low being before the IPO only 32%. In the profitability analysis the return on assets was low being in the range of 8.5% to 11.7% before the IPO. On the other hand the gross profit margin and net profit margin were fairly high. Olympic Entertainment Group had much better financial data before the IPO. Before the IPO they already had a high equity ratio, good return on asset and the return on equity ratio. Also the profit margins were fair. These were two very different initial public offerings. Arco Vara started to fall right from the beginning and did not have that c lassical IPO slope where it rises in the beginning for some time and then starts to fall when the underwriters have finished their job. Then again Olympic Entertainment Group rose for a few months before it started to fall. Then the question was why did Arco Vara had worse IPO than Olympic Entertainment Group. Arco Varas public offering cost them almost three times than it did to Olympic Entertainment Group. The reason why Arco Varas IPO was not very successful was the cooling down of the real estate market and the economy in general. The timing of the IPO was bad. It can be seen from Appendix 5 that the prices of other real estate and construction companies share started falling even some time before the IPO of Arco Vara. And right at the time of their IPO, the OMX Tallinn index started to fall also. Therefore in conclusion we can say that the underwriters cant always push the price of the share up. There are other factors that might make it almost impossible, for example the timing of the IPO. The example of Arco Vara showed that they did not have that window of opportunity at the time. At least the general economic situation did not favor them. References https://www.bizjournals.com/kansascity/stories/1997/12/15/focus2.html Draho, Jason. The IPO Decision: Why and How Companies Go Public. New York: Edward Elgar Publishing, 2004. https://en.wikipedia.org/wiki/Underwriting Desache, Jean-Marc, Christopher Mead, and Gide Loyrette Nouel. Equity Markets: Investing Conditions with Buoyant IPO Activity in Europe. Paris EUROPLACE. New York. 23 October 2006. Markets in Financial Instruments Directive. Wikipedia. 24 March 2009 https://en.wikipedia.org/wiki/Markets_in_Financial_Instruments_Directive. European Union. European Parliament and the Council. DIRECTIVE 2004/39/EC. Apr. 2004. 25 March 2009 https://eur-lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2004:145:0001:0044:EN:PDF. 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OECD Principles of Corporate Governance. 2004. 14 March 2009 https://www.oecd.org/dataoecd/32/18/31557724.pdf. https://stason.org/TULARC/investing/public-offerings-IPO-DPO/Positioning-your-Company-to-become-an-IPO.html https://www.finance30.com/forum/topics/ipo-timeline-template Initial Public Offe ring (IPO). NASDAQ OMX Baltic. 1 May 2009 https://www.nasdaqomxbaltic.com/?id=1418137. https://stason.org/TULARC/investing/public-offerings-IPO-DPO/IPO-What-you-Can-and-Can-t-Say.html https://stason.org/TULARC/investing/public-offerings-IPO-DPO/What-Is-Going-Public.html Underwriting https://chestofbooks.com/finance/private/Business/Chapter-XV-Underwriting-Origin-Of-Underwriting.html https://chestofbooks.com/finance/private/Business/Importance-Of-Underwriting-In-Present-Day-Financing.html https://chestofbooks.com/finance/private/Business/The-Underwriting-Syndicate.html https://chestofbooks.com/finance/private/Business/Syndicate-Agreements.html https://chestofbooks.com/finance/private/Business/Community-Of-Interest-Among-Underwriting-Houses.html Underpricing https://www.hec.unil.ch/cms_mbf/master_thesis/0001.pdf OMX Tallinn NASDAQ OMX Tallinn Estonian CSD. NASDAQ OMX Baltic. 03 October 2010 https://www.nasdaqomxbaltic.com/en/exchange-information/a bout-us/nasdaq-omx/nasdaq-omx-tallinn-3. 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Value Based Management.net. 9 May 2009 https://www.valuebasedmanagement.net/methods_quick_ratio.html. Equity Ratio. Wikipedia. 9 May 2009 https://en.wikipedia.org/wiki/Equity_ratio. Return On Assets (ROA). Investopedia. 9 May 2009 https://wwwinvestopedia.com/terms/r/returnonassets.asp. ROE. Tarkinvestor.ee. 9 May 2009 https://www.tarkinvestor.ee/wiki/index.php/ROE. Gross Profit Margin. Wikipedia. 9 May 2009 https://en.wikipedia.org/wiki/Gross_profit_margin. Stock Historical Data. NASDAQ OMX Baltic. Jan 2009. 5 March 2009 https://www.nasdaqomxbaltic.com/. Arco Vara AS. Annual Report 2003. Jun 2004. 3 April 2009 https://www.arcorealestate.com/upload/Aruanded/2003maj_eng.pdf. Arco Vara AS. Annual Report 2004. Apr 2005. 3 April 2009 https://www.arcorealestate.com/upload/2004_Annual_Report.pdf. Arco Vara AS. Annual Report 2005. Mar 2006. 3 April 2009 https://www.arcorealestate.com/upload/AV_AS_2005_Annual.pdf. Arco Vara AS. Annual Report 2006. Apr 2007. 3 April 2009 https ://www.arcorealestate.com/upload/Aruanded_ENG/2006_MAA_final_ENG.pdf. Arco Vara AS. Annual Report 2007. Apr 2008. 3 April 2009 https://www.arcorealestate.com/upload/Aruanded_2007_ENG/2007_ar_en_uni.pdf. Arco Vara AS. Annual Report 2008. Apr 2009. 23 April 2009 https://www.arcorealestate.com/upload/Aruanded_ENG/Annual_report_2008.pdf. Arco Vara AS. Yearbook 2006. Apr 2007. 23 April 2009 https://www.arcorealestate.com/upload/yearbook_2006_eng.pdf. Olympic Entertainment Group AS. Initial Public Offering Prospectus. Sep 2006. 16 March 2009 https://www.baltic.omxnordicexchange.com/files/tallinn/bors/prospekt/oeg/oeg_prosp_eng.pdf. Olympic Entertainment Group AS. Annual Report 2004. Apr 2005. 3 April 2009 https://www.olympic-casino.com/public/Corporate/documents/AnnualReport2004_ENG.pdf. Olympic Entertainment Group AS. Annual Report 2005. May 2006. 3 April 2009 https://www.olympic-casino.com/public/Corporate/documents/AnnualReport2005_ENG.pdf. Olympic Entertainment Gr oup AS. Annual Report 2006. Mar 2007. 3 April 2009 https://www.olympic-casino.com/public/Corporate/documents/aruanne2006eng.PDF. Olympic Entertainment Group AS. Annual Report 2007. Apr 2008. 30 April 2009 https://www.olympic-casino.com/public/Corporate/documents/Olympic_annual_2007_eng_EEK.pdf. Olympic Entertainment Group AS. Annual Report 2008. Apr 2009. 2 May 2009 https://www.olympic-casino.com/public/Corporate/documents/Olympic_annual_2008_eng_EEK.pdf. OMX Tallinn Index Historical Data. NASDAQ OMX Baltic. Jan 2009. 28 February 2009 https://www.nasdaqomxbaltic.com/. Resà ¼mee Appendices Appendix 1. IPO Process Timeline Example Time Period Process 1st Day Initial organization meeting and due dilligence; Review Timetable; Review letter of intent and discuss underwriting issues; Discuss Underwriters fees and compensation; Assign registration statement preparation responsibilities; Identify accounting and other problems; Select Printer; Review financial forecasts; Management due dilligence presentations; Discuss transfer agent and registrar; Prepare list of parties involved (phone numbers, addresses, secretaries, etc.) referred to as the working group list. 14th Day First draft of registration statement distributed. 21st Day First drafting session and due dilligence: Complete due dilligence presentations; Review draft of registration statement; Discuss problems. 21st to 22nd Day Revise registration statement; underwriters counsel to draft and distribute underwriters agreement, agreement among other underwriters, selling agreement and other documents relating to underwr iting (underwriting document) to company counsel. 27nd Day Distribution of second draft of registration statement. 31st to 32nd Day Second drafting session to review registration statement. 32nd to 46th Day Questionnaires completed by officers, directors, and 10% shareholders and returned to company counsel for review. 33rd Day Distribution of third draft of registration statement. 33rd Day Distribution of mangements discussion and analysis of financial position and results of operations. 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