Research by: Maria Theresa Manalac, Neil Ilagan (iMBA 2023), Marian Rikka Anora (iMBA 2023), Carlos Leandro Felipe (iMBA 2023), & Lawrence Sumera (iMBA 2022A)
Case Number: W43111
Abstract
Nicole San Juan, a portfolio manager for Crown Asset Management Philippines’ Peso Global Sustainability Fund, was trying to complete her valuation of Alternergy Holdings Corporation (the Company) stock in time for its initial public offering (IPO) in March 2023. San Juan needed to assess the Company’ value, strengths, weaknesses, and prospects to determine whether the stock would be a good investment. The Company had many renewable energy projects in various phases of development, from early stage to commercial operations, which required a sum-of-the-parts approach including discounted cash flow and comparable multiples analyses.
Learning Objectives
This case was used as a team-based exam in the Executive MBA program at the Asian Institute of Management. It is designed for an MBA-level introductory financial management course to teach valuation or an introduction to the IPO process and sum-of-the-parts valuation in an investment banking elective.
After working through the case and the assignment questions, students should be able to do the following:
- Evaluate the economic and stock market conditions for a planned initial public offering of a renewable energy company stock; Assess the attractiveness of the renewable energy industry as a potential area for investments.
- Describe the terms of an equity IPO.
- Evaluate the merits of investing in an IPO of a company based on analysis of strengths, strategies, risks, and prospects.
- Estimate the fair value price of a stock.
To cite this case: Manalac, M. T., Ilagan, N., Anora, M. R., Felipe, C. L., & Sumera, L. (2025). The sum of all parts: Alternergy IPO. Ivey ID: W43111. London, Canada: Ivey Publishing.
To access the case: https://www.iveypublishing.ca/s/product/the-sum-of-all-parts-alternergy-ipo/01tOF000008dE05YAE
