IPO

English Boards General
1

I have 1.7M cash, but when I want to buy some IPO it showed with red letter and not allow me to buy why? This is a good time to invest I do believe as everyone rush to expand their wings and routes. I don’t want to lose my opportunities. Anyone please clarify me.

2

I have $1.84Mil Cash in my subsidiary and even I still can’t start IPO or invest in another IPO.

3

Hi,

with the old system, players would create a subsidiary or a new holding with the only purpose to push the IPO of a friend. They invested a lot of money in their friend’s IPO and after a few days they would delete their subsidiary (and get their money back) or delete their extra holding. Cost: a few credits if you had an extra holding for a few days. In these cases, AS would automatically buy the shares of the deleted holdings/subsidiaries and the airline who did the IPO could keep the extra money it received.

I (amongst other players) have complained several times against this ‘legal’ way of cheating and the rules have changed.

Current restrictions:

  • you can only invest as much money as the value of one third of the shares on offer.

  • you are only allowed to invest if your airline has already accumulated some assets (enough cabin seats and or owned planes). That means brand new holdings/subsidiaries cannot support an IPO.

If your airline is new, you will make far more profit if you lease planes and run an airline than if you buy shares. Besides, AS is an airline simulation… not a stock market game ;)

Jan

4

Then nobody in Meigs servers now is able to invest in any IPO’s so we waste time in putting our airline to the market this week, right?

5

That is Correct

6

It’s wrong policy. Yes, it can prevent fraud, but on the other hand, the holding company often created precisely in order to invest in their own subsidiaries or to the most attractive companies on the market. The index, buyout you’ve entered the new rules, in accordance with the new rules will only fall, the growth of the economic situation will not happen.

While yes, it’s airline sim … However, the simulator should be close to reality, don’t you think?

7

Maybe you would like my advice…

Disable creation of additional holdings in one account at all servers, enter the approval of the investment of some AS-structure, as is done in reality, create a situation where anyone can invest, but the purpose of investment and the relationship between the companies - the investor and the investee - is subject to verification.

It’s a bit defuse the situation on the stock exchange;)

8

I think subsidiaries will not be able to invest… or am I wrong?

9

This whole situation is confusing. So let me get this straight. If you put your Airline on the stock market, your subsidiary (the company created from your investment company) wont see any profits at all? What is the point of the IPO than??

10

Hi,

let’s assume your (subsidiary) airline is worth 20 million and you take it to the stock market.

Then let’s assume other players buy shares for a value of 4 million.

After the IPO your holding holds 80% of the airline, the other share holders own 20%.

The equity of your airline is now 24 million and your airline has 4 million more in it’s bank account.

Going public should add around 25% to the value of your airline. The fresh money allows you to grow faster. That’s the advantage :slight_smile:

But… every week you have to pay out 15% of your profit to the share holders.

Jan

11

Hi, im a bit confused also.

I get how the IPO works for the company going public and offering their shares, but how do other companies buy/subscribe to shares.

I understand that the changes are to stop cheating, which is fine, but i cant see how anyone can subscribe to shares of other companies, so no one will have a successful IPO.

Are there set requirements in terms of equity, as when i tried to invest i got the error message i need more equity, and how would someone go about doing that.

It was frustrating that there seemed to be no official statement on how these new changes would affect the IPO process, so everyone went IPO and no-one got a single share.

Thanks for any help.

Phil

12

I agree, usually the AS team make informative announcements. As it stands, the IPO feature, which like it or not plays a role in the realism of the game as effectively disabled. There has yet to be an announcement other than make money, that outlines how we can become eligible to invest.

13

The feature in my opinion is not disabled, but just a bit delayed. In case it is not delayed, there will be a huge amount of multi-accounts again, replacing investment-holdings.

14

If its delayed, then fine, and if there are new requirements for airlines to participate in an IPO, which i presume there are, then thats fine. What is annoying though is that nowhere in the forums is there any detail on what these changes actually mean, or what actual requirements are needed. Its no good saying in the warning ‘not enough equity’, as how are we supposed to know how much equity we should have in order to subscribe shares. And i doesnt help as airlines planning an IPO wont know when other companies will be able to invest, so the whole idea of the stock market may as well not exist in the game anymore.

I must point out that although i am annoyed at the lack of detailed info on the changes, i am glad that the whole reason for these changes was to stop cheating, which is excellent!!

15

THIS IS BY FAR THE WORST NEW RULE EVER!! NO ONE CAN HAVE AN IPOS! THIS IS NOT HOW THE REAL WORLD WORKS!!

16

AND YET YOU HAVE TO UNDERSTAND THAT YOU CANNOT HAVE AN IPO AT THIS POINT! … But you will be able when it’s impossible for some people to cheat…

17

As far as I know the Meigs rules are now live on all other older worlds. Could anyone tell us (the Meigsiacs ) if they are able to invest in IPOs? I supposed that being older with a stable economy and bigger companies this should be possible.

18

For older companies on the old servers there should be no Problem. Only newer Companies have the same Problem. I startet my company on Idlewild in Jan and i can sign for shares there (tested it 2 days ago). If you look on your balance sheet, scroll down you see on the left assets and on the right Liabilities. I have on meigs a shareholders equity of around 16 million and can not buy shares and on Idlewild i have there 26million and can buy shares. So i guess (its not confirmed) you need between 20-25million shareholders equity to buy shares. But its a personal guess at the moment.:rolleyes:

regards

BenjaminA330

19

I tried to sign for someone IPO on meigis out of curiosity and it worked fine. It seems that current limit for IPO participation is somewhere around 20 Mio on equity.

Now I only need to find loan limits!

20

Does that mean that the system penalizes new companies and benefits old companies on old servers? At least on Meigs, where there was a total data wipeout, everyone is penalized equally!