Suppose a Bermuda incorporated China Concept company CNCOM is in the process of carrying out a global offer The global offer comprises a primary offer of 600 million shares and a secondary offer of 200 million shares The vendor in the secondary offer is CNCOMs controller, MAGNATE Just before the offer, CNCOM had 2,800 million ordinary shares of par $0 10 outstanding, with 2,520 million such shares held by tycoon MAGNATE and the remainder, 280 million shares, held by private equity investor PEINV Suppose the IPOs final offer price is determined at $8 00 per share At the end of the second week of secondary market trading in CNCOMs new listing, full exercise of the over allotment option occurs, forcing CNCOM to issue 90 million new shares and the vendor, MAGNATE, to sell a further 30 million existing shares Note that both the listing company and vendor have written Green Shoe options (i e , both are Option Grantors) Calculate the percentage of equity retained by MAGNATE in CNCOM after full Green Shoe exercise (Round your answer to two decimal places) (b) After full Green Shoe exercise, what percentage ownership of CNCOMs stock is held by PEINV ( ) Round you answer to two decimal places (c) After full Green Shoe exercise, what percentage ownership of CNCOMs stock is held by the public ( ) Round your answer to two decimal places ( ) Note that MAGNATE and PEINV do not buy shares in either the IPO or Green Shoe (d) Suppose CNCOMs stock trades at the close of the twentieth business day of secondary market trading at a price of $10 Accordingly, determine CNCOMs market capitalization value at the close of the twentieth business day of secondary market trading in the stock (e) How much gross funding (i e , proceeds generated before consideration of any issue or transaction costs) do the following entities or parties receive from the IPO and associated Green Shoe (i) CNCOM (ii) MAGNATE (f) Suppose CNCOMs price to book ratio (or market to book) ratio is 2 25 times, as based on the companys net asset position after IPO and full (i e , 15 percent) Green Shoe Accordingly, determine the book value of CNCOMs net assets just prior to IPO ( )

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Suppose a Bermuda-incorporated China-Concept company CNCOM is in the process of carrying-out a global offer. The global offer comprises a primary offer of 600 million

Suppose a Bermuda-incorporated China-Concept company CNCOM is in the process of carrying-out a global offer. The global offer comprises a primary offer of 600 million shares and a secondary offer of 200 million shares. The vendor in the secondary offer is CNCOMs controller, MAGNATE. Just before the offer, CNCOM had 2,800 million ordinary shares of par $0.10 outstanding, with 2,520 million such shares held by tycoon MAGNATE and the remainder, 280 million shares, held by private equity investor PEINV. Suppose the IPOs final offer price is determined at $8.00 per share.

At the end of the second week of secondary market trading in CNCOMs new listing, full exercise of the over-allotment option occurs, forcing CNCOM to issue 90 million new shares and the vendor, MAGNATE, to sell a further 30 million existing shares. Note that both the listing company and vendor have written Green-Shoe options (i.e., both are Option Grantors).

Calculate the percentage of equity retained by MAGNATE in CNCOM after full Green Shoe exercise (Round your answer to two decimal places).

(b) After full Green-Shoe exercise, what percentage ownership of CNCOMs stock is held by PEINV? (*) Round you answer to two decimal places.

(c) After full Green-Shoe exercise, what percentage ownership of CNCOMs stock is held by the public? (#) Round your answer to two decimal places.

(#) Note that MAGNATE and PEINV do not buy shares in either the IPO or Green-Shoe.

(d) Suppose CNCOMs stock trades at the close of the twentieth business day of secondary market trading at a price of $10. Accordingly, determine CNCOMs market capitalization value at the close of the twentieth business day of secondary market trading in the stock.

(e) How much gross funding (i.e., proceeds generated before consideration of any issue or transaction costs) do the following entities or parties receive from the IPO and associated Green-Shoe?

(i) CNCOM

(ii) MAGNATE

(f) Suppose CNCOMs price-to-book ratio (or market-to-book) ratio is 2.25 times, as based on the companys net asset position after IPO and full (i.e., 15 percent) Green-Shoe. Accordingly, determine the book value of CNCOMs net assets just prior to IPO. (#)