Simcountry
Forum Suggestions Adjust IPO Criteria

Adjust IPO Criteria

E
E O

All worlds
17 Sep 2020 20:28Link
Having a low P/E is extremely difficult for corporations that achieve high values. I have, for example, some corporations that consistently make decent profits and have corporation values of between 500b and 800b that I'm unable to IPO. Their value is too high.

Instead of having to spend days manipulating their value by holding products, lowering productivity, etc. to artificially drop their value, I'd rather see something like (not exactly but this illustrates the proposal):

If value >500b, and profit over 5b/year, then you can IPO. I think the defense against IPO'ing corps that are low value or low profitability makes sense, but why block corporations that are very successful? If they weren't successful, they wouldn't have these enormous corporation values.
A
Andy

All worlds
18 Sep 2020 09:59Link
Can you give me a name of a corporation and the location.

I will have a look.
I can imagine that the P/E ratio could become a problem.
E
E O

All worlds
18 Sep 2020 20:03Link
Sure! Some examples can be found on LU in my enterprise "Tiki Taka."

Corps:

- Stratford Rubber. Made profit of 22b last game year, but value is over 700b, so P/E is bad
- Pacifica Carbon. Profit over 23b last game year. Value over 700b.


Let me know if you'd like more examples - happy to help.
A
Andy

All worlds
25 Sep 2020 13:40Link
We are reevaluating the conditions, market value and P/E ratio.
There is a valid point here.
E
E O

All worlds
09 Dec 2020 21:37Link
Since the Nov30th update, it's become much more difficult to IPO corporations. Other changes in that update seem great, but overall, it has impacted the ability to execute IPOs at all.

Would it be possible to counteract this by raising the required P/E to execute an IPO from 40 to 50? Even with a P/E of 50, a corporation needs to be well-run.
A
Andy

All worlds
11 Dec 2020 15:57Link
I will check the way it is computed and get back here with some answers.