I wonder if there is something else going on, as this sounds like an awfully good way to cover up a sinking ship, yet still take money out for the stakeholders.

I wonder if there is something else going on, as this sounds like an awfully good way to cover up a sinking ship, yet still take money out for the stakeholders. In 5 years time when the company is bankrupt they can just come out and say the IPO was a bad idea, while the main stakeholders are sitting nicely in their gold plated Lamborghini's [0]. [0] I made that up, but turns out it is actually a thing: https://m.economictimes.com/nation-world/strange-things-saudi-princes-spent-money-on/when-money-matters/slideshow/56999098.cms https://m.economictimes.com/nation-world/strange-things-saud...