medium · Investment Banking rx-dcm-ecm
If an existing shareholder owns 5.0 million shares in a company with 40.0 million shares pre-IPO, and the company issues 10.0 million primary shares in the offering, what is the shareholder's new ownership percentage, assuming they do not sell any shares?
- 10.0%
- 11.1%
- 8.0%
- 12.5%
Sign up free to see the explanation and track your rank →
More Investment Banking rx-dcm-ecm practice
- Which path is more appropriate?
- What is the primary purpose of a 'Lock-Up Period' following an IPO?
- Which of the following is a 'Maintenance Covenant' typically found in bank debt but absent
- What is the total number of shares sold to the public in this offering?
- In a competitive IPO process, what is the primary purpose of the 'Bookbuilding' phase?
- If the underwriters apply a 15% IPO discount, what is the implied Enterprise Value for the
- If the underwriters apply a 15% 'IPO discount' to the peer valuation, what is the implied
- What is the primary risk associated with a 'Direct Listing' compared to a traditional IPO?