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There has been several reasons for why IPO of Bankia was a failure.
1. financial problems of Bankia. Bankia itself had toxic assets, which created huge problems similar to Lehman they had lots of losses because Bankia Bank was created from several savings bank (such as Caja madrid and others). So they had credit risk, poor management general risk and specific banking problems.
2. Problems in the Spanish systems/ wrongdoings of IPO.
There was a political push from the government that pushed for the IPO to happen even when it should have not.
Problems with the auditors, underwriters, restatement of financials, big scandal and IPO had tainted information.
Why it happened?
analyze the different reasons of why the IPO took place( consider management,global environment)
IPO potential ongoing regulations, underwriters
The savings banks (pre-Bankia which all merged together to create Bankia) had most of the problems. The reasons are political unions?management problems?
What could have been done?triggers? how could you have avoided the problem?
Evaluate corrective measures done
Also, before the formation of bankia the savings banks issued preffered shares which were also based on improper financials
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