Homer is right. However when a stock IPOs, they ar
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Posted On: 01/17/2019 12:13:32 PM
Re: homerbedloe #1518
Homer is right. However when a stock IPOs, they are raising a certain amount of money, not a stock price. The stock price will be determined by taking the amount rec'd divided by the shares outstanding and coming up with a price. Now the market my say that price is too high and then they adjust that price, but then the amount raised will go down too.
So, let's say NIO gives 10% to shareholders (26M GNBT divided by 4 is 6.5M shares dividend to GNBT holders). 6.5M is 10% so that means we come out with 65M shares. If we come out with a $325M market cap to raise money, the shares would be valued at $5/share. These are just assumptions on my part.
So, let's say NIO gives 10% to shareholders (26M GNBT divided by 4 is 6.5M shares dividend to GNBT holders). 6.5M is 10% so that means we come out with 65M shares. If we come out with a $325M market cap to raise money, the shares would be valued at $5/share. These are just assumptions on my part.
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Disclaimer: Of course, all of this is my opinion and you should not make any investment decisions based on my opinion. I have not received any non-public information.