I am not entirely sure if this is a bug, but it seems so to me.
First problem when doing an IPO:
The parent company owns 100% of the subsidiary, so when you sell for 20% up to 40% for a subsidiary for an IPO, why does the money go to subsidiary if the parent company owned 100% of the stock?
Second problem, the market evaluation:
Let's say that before you IPO the parent company was worth 2billion dollars on the stock market, and after you IPO with a subsidiary let's say that you own 80% of it and another 1 billion. I'm not entirely sure if this is a bug, but the parent company will now be worth about 2.3 billions, instead of something closer to 3 billions. The evaluation seems to be incorrect.
Subsidiary IPO - is this a BUG?
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Re: Subsidiary IPO - is this a BUG?
gamebak wrote: ↑Wed Aug 01, 2018 2:06 pm I am not entirely sure if this is a bug, but it seems so to me.
First problem when doing an IPO:
The parent company owns 100% of the subsidiary, so when you sell for 20% up to 40% for a subsidiary for an IPO, why does the money go to subsidiary if the parent company owned 100% of the stock?
Second problem, the market evaluation:
Let's say that before you IPO the parent company was worth 2billion dollars on the stock market, and after you IPO with a subsidiary let's say that you own 80% of it and another 1 billion. I'm not entirely sure if this is a bug, but the parent company will now be worth about 2.3 billions, instead of something closer to 3 billions. The evaluation seems to be incorrect.
Like your company issuing new shares, your sub goes public to raise cash to do whatever.
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