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Heard rumours they left $6B on the table, as demand for their equity exceeded supply.
by d_silin 6y ago
Heard rumours they left $6B on the table, as demand for their equity exceeded supply.
- WJW 6y agoIf you have more demand than supply, you are not "leaving the money on the table" though. You just don't sell all of the company.
- alexeichemenda 6y ago> You just don't sell all of the company The other option (more often used) is that you can raise more money at a higher valuation. You dilute yourself by the same amount as the initially planned raise, but you get more money and don't end up selling more/all of the company.
- dogma1138 6y agoYou can also have different classes of equity, you can have equity with reduced or no voting power but the same dividends rights, or the other way around.
- walrus01 6y agoThe available $6bn probably wanted a greater percentage of shares than the pre-existing shareholders considered suitable, in terms of dilution.
- est31 6y agoIsn't that pretty normal? People give different orders at different price points, according to their demand curve. The seller then chooses which order to serve and which to ignore.