top button
Flag Notify
    Connect to us
      Facebook Login
      Site Registration Why to Join

Facebook Login
Site Registration
Print Preview

What happens to the shares belonging to the existing shareholders after an IPO?

+1 vote
3 views
posted Jul 17 by Kavana Gowda

Share this question
Facebook Share Button Twitter Share Button Google+ Share Button LinkedIn Share Button Multiple Social Share Button

1 Answer

0 votes

Lets consider an example. Suppose you own a 100% holding company. There are 20,000 shares and you own all of them. Subsequently, you decide to go for an IPO.
There are two scenarios.

  1. Suppose your company issues 10,000 new shares and puts all of them on offer in IPO. Post IPO, the total number of shares will rise to 30,000 and your holding will drop to 66.67% (20,000/30,000) in the company.

  2. Your company issues 5000 new shares and puts all of them on offer in IPO. Additionally, you put 5,000 of your own shares on sale. Post IPO, total number of shares will rise to 25,000 and your holding will drop to 60% (15,000/25,000).

answer Jul 18 by Anita Yadav
Contact Us
+91 9880187415
sales@queryhome.net
support@queryhome.net
#470/147, 3rd Floor, 5th Main,
HSR Layout Sector 7,
Bangalore - 560102,
Karnataka INDIA.
QUERY HOME
...