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So who gets the $500m or so they're suggesting the IP will raise? Is that going to be injected into the foundation in which case they could do a lot with it (pr

• jacquesm 3y ago
  That depends on the kind of float, you can float in three different ways: emit new stock, sell existing stock, a combination of those two. Any new stock emitted will have the bulk of the funds (minus fees and all that) deposited in the company, selling existing stock will have the bulk of the funds deposited with the existing share holders. It isn't rare for there to be a lock-up period before existing stock holders are able to sell their shares on the market to avoid people dumping stock they know is worth less than the float price. This is because there is a fair chance that those closely involved with the company have a better long term view on what the company will do than the market so it takes a while to get any post float surprises to be priced in. That's one reason why IPOs tend to be tricky to price: overprice and the stock will drop after the float and those that bought the IPO will feel burned, underprice and you're leaving money on the table.
  • srmarm 3y ago
    Good point that it's unlikely to be as simple as a $500m return but regardless of the amounts or structure of IPO my question was more around who are the existing share holders of the commercial company? Is it the foundation or someone/something else? Is this float to get cash or financial stability for the foundation or a cashout by other parties? At the end of the day I'm not going to be too critical in any case as I've contributed nothing beyond buying a few boards and making a few posts in support!