Need HELP - Private placement
Can private placement apply to listed companies? or it is only for companies haven't gone through IPO? Detailed answers are highly appreciated!!!! Thanks!
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a public company can use a private placement to raise money for sure. in that case it would sell stock to a limited group of (large institutional) investors in an offering that is not made to the general public.
i cant say much about the frequency with which this happens. maybe someone on here has been involved with such a transaction though and can comment further.
In fact, i am currently involved with such a transaction which is a public company issues additional stock to a limited group of investors. Im just not sure whether such transaction called private placement or not because I got the definition of private placement from wikipedia saying that private placement is for companies which are not listed yet. Here is the original sentence Private placement (or non-public offering) is a funding round of securities which are sold without an initial public offering, usually to a small number of chosen private investors.
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