Company public but not trading at all
Hi guys!
Hope everyone is safe! Right now i am studying a public company and i have few questions for you....
(Numbers are not the same) The company has a small market cap €30m, share price at 30 and 1.000.000 shares outstanding with 250.000 floating in the market. The company has been growing at all levels at approx 10% a year. No debt.
The company has ipoed 2 years ago, the market cap has not fluctuated at all since average volume 12 month of the stock is 200 stocks.
What are the options for the owners in order to maximize the value of the company since being public is not beneficial? Stock split?, Privatize and ipo in 3 years? I have no idea I am not a pro like you!
Any idea would be amazing!
Thanks!
I am working with a lot of semi-liquid and illiquid companies in my market. If you want liquidity and larger free float, I would consider SPO or FPO.
Did you check the bids and asks for the company shares, how large is the spread normally? Run a basic DCF model and see if the fair value is more on a supply or demand side. I am actually very surprised that a 25% free floated company is so illiquid. What was your method of calculating the free floated shares?
For the owners, being listed provides good exit opportunities, as well as better trust, and a sense of how their company is valued by the market, so I would not consider delisting if the financial health is good.
Thanks!
Does it list anywhere else via adr?
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