Technical PE Interview Question: IPO Share Issuance

Anyone know why in an lbo model with an IPO scenario, the IPO shares issued grossed up by the IPOed %? In other words, I get that if the assumption provided for how much of the company is IPOed is 15%, the share issued would surely be the pre-IPO shares outstanding multiplied by 15%. But then it is FURTHER grossed up by that 15%. Anyone know the explanation for that?

 

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