Facebook's market debut last week in the United States
raises comparisons in the New Zealand context with Trade Me's
IPO in November last year.
This Brief Counsel compares aspects of the relevant disclosure
documents, and offers some observations on the differing approaches
to risk factor disclosure.
Introduction
The IPOs of Facebook and Trade Me have attracted widespread
interest and media commentary, not least because both companies
have a history of innovation and rapid growth in their respective
markets.
And, although they operate different business models, both
invite the same fundamental question: will their current market
dominance be diminished by competitors or new technology, given the
constantly changing nature of the internet and online
interaction?