Chapter 6

Initial Public Offer (IPO)

Facilitator: DERO Juan Pablo Salas del Río

Honestidad Integridad Equidad Verdad Libertad Respeto a la Vida

Respeto a la Naturaleza Paz Justicia Comportamiento Ético Solidaridad

Initial Public Offer (IPO)
First Public Sale of Financial Instruments of a Company on the Stock
Exchange.
Here the value of the company is broken into pieces for the first time.
Here, in the case of Mexico, the company goes from being SA de CV to
being SAB de CV.

Chapter 6
Honestidad Initial Public Offer (IPO)
Share
Financial Instrument that represents a Piece of the Accounting Value
of the Company.

Chapter 6
Integridad Initial Public Offer (IPO)
Shareholder
Holder of at least 1 Share of a Company.

Chapter 6
Comportamiento Ético Initial Public Offer (IPO)
Macro Classification of Shares
According to Access
According to Dividend Payment Claim
According to Marketing
According to Legality

Chapter 6
Equidad Initial Public Offer (IPO)
According to Access
Private Shares
Public Shares

Private Shares
They are the Shares of a Company that are Owned by Private Shareholders; These Shares
are not traded on the Stock Exchange.

Public Shares
They are the Shares of a Company that are Owned by Public Shareholders; These Shares
are traded on the Stock Exchange.

Chapter 6
Verdad Initial Public Offer (IPO)
According to Dividend Payment Claim
Preferred Shares
Common Shares (Ordinary)

Preferred Shares
Shares that grant their Holders certain Privileges that give them Priority over Common
Shareholders regarding the promptness of Dividend Payment (Payment x Performance of
the Share). The Owners of these Shares, as a rule, do not have the Right to Vote in the
Shareholders' Meeting since they are Owners who were invited to be part of the
Company only for it to grow or be financed.

Common Shares (Ordinary)

Actions that receive their Dividend (Payment) after satisfying all other Rights on the
Income and Assets of the Company. They are also called Residual Shares because they
receive their Dividend (Payment x Performance of the Action) after having paid the
Dividend (Payment x Performance of the Action) of all the Preferred Shares. The Owners
of these Shares always have the Right to Vote in the Shareholders' Meeting since they
are usually Majority Owners or Initial Owners of the Company.

Chapter 6
Libertad Initial Public Offer (IPO)
According to Marketing
Issued Shares
Outstanding shares
Rescueable Shares

Issued Shares
These are the Shares that were manufactured and that will be put on Sale in the
Exchange.

Outstanding shares
It is the Totality of Shares both Private (that are not sold), and Public (that are put up for
Sale).

Rescueable Shares
Shares that the Issuer (Seller) withdraws from the Market (Stock Market) within a certain
Period and at a specified Price, usually higher than the initial price at which the Share was
sold.

Chapter 6
Respeto a la Naturaleza Initial Public Offer (IPO)
According to Legality
Shares with the Right to Vote
Shares without the Right to Vote
Shares with Plural Vote
Shares with the Right of Preference
Shares with Conversion Option

Shares with the Right to Vote

Shares that bring with them since the creation of the IPO the power to modify the way of
operating a company. Usually, they are the Common (Ordinary) Shares.

Shares without the Right to Vote

Shares that bring with them since the creation of the IPO the absence of the power to
modify the way of operating a company. Usually, they are the Preferred Shares.

Chapter 6
Paz Initial Public Offer (IPO)
Shares with Plural Vote
Shares that bring with them since the creation of the IPO the power to modify the way in
which a Company operates in at least 2 or more times. Usually, they are the Common
Shares (Ordinary).

Shares with the Right of Preference

Shares that bring with them since the creation of the IPO the power to allow
Shareholders to purchase additional Shares at a Price Below the Price and Before being
placed for Sale, in Direct Proportion to the Number of Shares of their Property.

Shares with Conversion Option

Shares that bring with them since the creation of the IPO the power to allow the Holders
(Shareholders) to "Change" 2 or more Preferred Shares for 1 Common Share. Usually, to
be entitled to Vote as a Common Shareholder (Ordinary).

Chapter 6
Justicia Initial Public Offer (IPO)
Dividing by Share
It is the Payment in $ of the Earnings of a Share. This Payment is made
during the business days of the Month of January of each Year, as it
results from the Net Income of the Accounting Year of 1 full Year.

Chapter 6
Verdad Initial Public Offer (IPO)
Requirements to quote on the Stock Exchange
Have a capital of MNX 90 million pesos (USD 4,500,000)

Have prestige in the market of the Sector (Industry) to which it belongs

Be registered as a Corporation of Variable Capital

Stay up to date with your Tax payment

Stay up to date with the workers' Saving Fund payment

Stay up to date with contributions to Social Security

Have the necessary documentation to support the 5 points above, this, to be delivered to
the National Banking and Securities Commission (CNBV) and the Mexican Stock Exchange
(BMV)

Chapter 6
Comportamiento Ético Initial Public Offer (IPO)
… We continue with Theoretical Evidence, Practical Evidence or Video …!

Chapter 6
Libertad Initial Public Offer (IPO)