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How To Price an IPO
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Andrew Carnegie RJ: Andrew Carnegie CO: Andrew Carnegie Post Rating: 0 + / - Total Posts: 94 Karma: 10 Joined: Sep 13, 2013 |
Posted on Sep 27, 2013 Soon, my new company will exceed $100 million in Net Worth. What is a good metric to set the price of the IPO sharers? 10 x net worth? 100 X? i see numbers all over the board on "recent" IPOs, so would really appreciate any good suggestions in setting a price for a say 40% share of the company for its IPO. Thanks.
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Henry King RJ: Business Tycoon CO: BusinessTycoon Post Rating: 0 + / - Total Posts: 83 Karma: 13 Joined: May 31, 2013 |
Posted on Oct 9, 2013 You can not price at any value other than book value for the IPO. You can price shares higher after the IPO, but the IPO price is book value (net worth). You can set price higher or lower for shares, but you then sell more or less shares so that the total value of shares x price still is book value for the amount of the company stock you are selling.Also, remember, you will get ZERO cash personally for selling stock in an IPO. The company gets the cash. You only get the cash when you sell stock to another player after the IPO. |
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