Please kindly assist with the following questions: Number of shares issues - what really determines the number of shares issued? Liquidity risk - how can one make sure there will be enough liquidity in the market when deciding the number of shares to issue for an IPO

Number of shares depends on the amount of money you want to raise, % of shares you want to issue and offer price per share Roadshows ahead of an IPO are conducted to test institutional investors demand for shares. IPO shares are allocated in advance to institutional investors

Valuation (business fundamentals) and Demand (Marketability) How much capital the company wants to raise / amount of ownership willing to give up if the price is too high, not enough investors will subscribe to the issue and the underwriting company will be left with shares it either cannot sell or must sell at a reduced price, incurring a loss. Sometimes, when underwriters can't find enough investors to purchase IPO shares, they are forced to purchase the shares that could not be sold to the public aka "eating a stock"

IPO number of shares

Please kindly assist with the following questions:

Number of shares issues - what really determines the number of shares issued?
Liquidity risk - how can one make sure there will be enough liquidity in the market when deciding the number of shares to issue for an IPO

5,803 WSO Academy Investment Banking Session Reviews: 4.82/5

Class of '29 Oct 2026 Cohort

5.00/5

Investment Banking Mock Coffee Chat

“Kevin was incredibly helpful. He took the time to do a coffee chat with me and was candid about where I could improve. His main point was that I should build more knowledge of the industry before these conversations, so I can ask sharper questions and show I've done my homework. He also gave me a clear framework for the conversation itself. Start by asking about their background and how they got into their role. Then ask for advice for my field, including what they would do in my shoes. He also explained when it is and isn't appropriate to ask for a referral, which is something I hadn't thought through before. ”

Class of '27 Jul 2025 Cohort

5.00/5

Investment Banking Mock Interview

“Julius is great. This was my first mock interview with him and definitely not the last. Before the session, he emailed me a clear plan of what we would cover: behaviorals like Why Citi and Why IB, sector trends and recent deals, classic technicals across accounting, DCF, comps, LBOs and accretion/dilution, and conceptual questions to test whether I actually understood the material rather than just memorizing answers. That structure made my preparation much more focused. During the mock, he pushed past the standard answers to check my understanding, which showed me exactly where I need to go deeper. He is very responsive over email, knowledgeable about the recruiting process, and clearly invested in helping me improve. I have been learning a lot from him and plan to book more sessions.”

See All 10,832 WSO Academy Reviews

10 Comments

masters

PE

9y

Best Response

Number of shares depends on the amount of money you want to raise, % of shares you want to issue and offer price per share
Roadshows ahead of an IPO are conducted to test institutional investors demand for shares. IPO shares are allocated in advance to institutional investors

Reply

Quote

Report

Other

Authored by: Certified Private Equity Professional - PrincipalCertified Private Equity Pro

Tedypendah

?

9y

Say I plan on raising $50M, and I want to issue 50% and the offer price is $1 per share, how so I calculate the number of shares?
After the IPO, how will i know that in the future shares will change hands easily?

Reply

Quote

Report

Other

masters

PE

9y

Nr of shares will be $50mn divided by 1$ per share so 50mm shares. The % you are offering will depend on the pre-ipo equity value. If this is 100mn then post ipo equity value will be 150mm so the 50mm issued will represent 33%
You cannot be sure, usually a large number of shareholders and a large amount of shares available increase the liquidity but you cannot have a gurantee

Reply

Quote

Report

Other

Authored by: Certified Private Equity Professional - PrincipalCertified Private Equity Pro

3 replies

Jamie_Diamond

PE

9y

Valuation (business fundamentals) and Demand (Marketability)
How much capital the company wants to raise / amount of ownership willing to give up
if the price is too high, not enough investors will subscribe to the issue and the underwriting company will be left with shares it either cannot sell or must sell at a reduced price, incurring a loss. Sometimes, when underwriters can't find enough investors to purchase IPO shares, they are forced to purchase the shares that could not be sold to the public aka "eating a stock"

Reply

Quote

Report

Other

What concert costs 45 cents? 50 Cent feat. Nickelback.

JFinanceQs

IB

9y

Debitis perferendis assumenda perferendis doloribus. Dolor consectetur ut consequatur amet voluptatem dolor unde.

Assumenda maxime voluptas ad. Nemo ipsam quos officia amet dolorem est minima. Dicta quae ipsum debitis error beatae quae labore dolor. Vitae qui dignissimos officiis consequatur eligendi. Et quod et omnis nostrum rem hic. Ducimus ut repudiandae omnis vel et dolore numquam. Consectetur assumenda ea perferendis ipsa iure optio.

Reply

Quote

Report

Other

+185	Piper Sandler in talks to acquire PWP	75	21h
+124	UBS Appears to be Exploring Sale	19	3d
+99	Paradise Is Paradise	8	1d
+81	Drunk VP. How to manage?	27	2d
+39	How do I take my foot off the gas? (AN1)	4	2d
+38	Lazard US Views 2026/2027	13	2d
+26	Why did EVR succeed vs GHL or PWP that ended up getting acquired?	9	16h
+22	Mandated 9:00am Arrival?	6	4d
+21	Prestige Upgrade: Incoming Piper Sandler Intern (PWP Merger)	4	5d
+21	How early is to early?	9	8h

1	redever	99.2
2	BankonBanking	99.0
3	Secyh62	99.0
4	kanon	99.0
5	DrApeman	98.9
6	Betsy Massar	98.9
7	dosk17	98.9
8	GameTheory	98.9
9	CompBanker	98.9
10	Jamoldo	98.8

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

IPO number of shares

Score Breakdown

Feedback

Score Breakdown

Feedback

Elite Career Bootcamp. Top Job Offer Guaranteed.

Elite Career Bootcamp. Top Job Offer Guaranteed.

IPO number of shares

See All Comments - 100% Free

Trending Content - Investment Banking Forum