Question
A company is planning to go public. Currently, the pre-IPO value of the firms equity is $95 million, the number of outstanding shares is 3.5
A company is planning to go public. Currently, the pre-IPO value of the firms equity is $95 million, the number of outstanding shares is 3.5 million, the company need to raise $17 million, and the floatation cost of new equity is 12%.
Calculate the gross proceeds needed from an IPO given the above information.
What is the post-IPO equity value?
What is the offer price?
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The Handbook For Investment Committee Members
Authors: Russell L. Olson
1st Edition
0471719781, 978-0471719786
