medium · Investment Banking rx-dcm-ecm
A private equity firm owns 80% of a company with 100.0 million shares. In an IPO, the company issues 25.0 million primary shares and the PE firm sells 10.0 million secondary shares.
What is the PE firm's ownership percentage post-IPO?
- 64.0%
- 70.0%
- 50.0%
- 56.0%
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