IPO - max funds raised?

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1

Hi,

This is a question for the admin team or perhaps someone who is very familiar with IPOs.

Given a particular pre-IPO equity value, what is the minimum and maximum amount of funds that can be raised through an IPO?

The exact will depend of course on the number of subscriptions. But there will be a min point below which the IPO will fail. I assume there would also be a max.

Thanks in advance.

Saad

2

As I'm running an IPO right now, I had to look this up as well.

To be successful, you have to get 50% subscription on your offered shares. Maximum is 200%. Since the percentage that get subscribed is basically your starting price, the easiest way I've figured to do it (at least for what I believe is correct) is to multiply the total number of shares in the IPO * the number of the percent.

So if I had 20,000 shares in my IPO, and it ended up at 78% subscription, or roughly 78.00 starting price of the stock, I would receive roughly 1,560,000.

3

Thanks, that is very helpful indeed.

And do you know what determines the number of shares in the IPO?

S

4

I think it works like this. Go to your Balance Sheet, and down near the bottom you'll find equity and shareholder's equity. I think the formula is something like this:

(Equity + Shareholder's Equity) / 100

I might be a bit off on this, but it seemed to fall in that formula for me.

5

What about investment received during an over subscription?