Objects of the Offer tells you how much money goes to the company and how much goes to selling shareholders. Money in an offer for sale does not fund the business.
Restated Financial Information shows revenue, profit, borrowings and cash flow for the last three financial years. Compare cash from operations against reported profit.
Basis for Offer Price explains the price using earnings multiples and peer comparisons. Check whether the peers named are genuinely similar in size and business.
An easy example
Instead of reading 500 pages, start with four sections: Objects of the Offer, Risk Factors, Our Business and Restated Financial Information.
Important note
The risk factors section is written by the company and its advisers, and lists issues that could affect the business.
Common mistake
Reading only the summary pages and skipping how the raised money will actually be spent.