In an equity carveout, AMBS sells shares in its su

In an equity carveout, AMBS sells shares in its subsidiary and pockets the cash.

From Forbes:

"In a traditional equity spin-off, the parent company distributes all of its equity ownership in a subsidiary company to existing shareholders in a tax-free dividend of the subsidiary’s newly traded stock. Once the spin is completed, the ownership structure of the spin-off and the parent company are identical. Shares are simply distributed to existing shareholders as a pro rata dividend.

In an equity carveout, the parent company sells a stake in the subsidiary company (usually 20% or less) for cash proceeds in an IPO and often distributes the remaining interest to existing shareholders at a later date. Unlike a traditional spin-off, an equity carveout generates capital since shares in the subsidiary are sold to the public via an IPO."

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But the money raised by the IPO would go to the new company, not AMBS, wouldn't it? I understand that AMBS might hold a percentage of the shares, but that would not give any cash to AMBS and I assume that AMBS would be limited to selling any shares they would own, at least for a while. I can see how if might create value in the form of shares in the new company both for AMBS and AMBS shareholders, but that is not cash. Am I missing something?

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