Hi,
I’m a bit confused about the valuation behind equity raising.
How do you decide how many shares to issue and how do you decide how much each of those shares are worth? For instance if a private company is valued at £100m (company A) and they want to IPO, how much could they raise in IPO or if it was a public company how do you decide how much they could raise? and how do you decide how many shares to issue?
Thanks
| +349 | Evercore Intern Seizure | 56 | 3h |
| +60 | JPM M&A is Gone??? Purely Coverage Banking??? | 30 | 4h |
| +57 | Is DCM actually underrated ? | 24 | 6h |
| +48 | Losing my personality in Banking | 9 | 6h |
| +48 | How do I understand vs. just memorizing? | 6 | 5h |
| +47 | Are all Tech / TMT groups sweaty? | 38 | 10h |
| +42 | Associate & Above IB exits | 16 | 3d |
| +39 | Am I behind? 31 Year Old Analyst | 9 | 2d |
| +32 | Incoming IB Analyst: Best Ways to Prepare? | 10 | 3h |
| +27 | Which groups are ideal for laterals? | 12 | 5h |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
You have primary and secondary sales: are existing shareholders selling to exit or are they issuing additional shares to raise capital for the company (or debt redemption). Depends on goal of IPO.
Most IPOs sell 10-20% of the company, and you typically want to have maybe a 5-10% pricing range for $/share at open. You can do the math to back into number of shares required at a certain price given the IPO valuation and % of company sold into IPO market to get share price range.
Dolorum eveniet quis voluptas. Ut harum quibusdam odit neque amet sunt eos quis.
Nihil voluptatum repellendus qui molestiae qui animi quo. Consequatur est ipsum eius et. Ut tempore omnis eos nemo aut quos perferendis. Nihil ea aut et est a asperiores.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...