IPO and share capital requirement
Hi guys, I am currently doing my internship at a small company that is looking into listing on a stock exchange.
I am just reading through the seminar presentation slides, and it says "Applicants must have issued share capital of at least $10 million." "Public shareholding requirement (spread) of 10% and reasonable liquidity"
I'm a little confused about the first quote. If the company releases 20% of its share through an IPO, does that mean the total value of that 20% has to be more than $10 million? What does share capital requirement exactly mean?
Means that your company has to have >=usd10mil in share capital. Thus assuming there are 10 million issued shares, the 20% float would be 2mil shares which may or may not be >usd10mil depending on valuation.
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