Question
You and your fellow shareholders have decided to take your company public through an IPO. Previously, the company has been through the following investment rounds:
You and your fellow shareholders have decided to take your company public through an IPO.
Previously, the company has been through the following investment rounds:
| Round | Source | Shareprice | # shares |
| Series A | You | $1.00 | 100,000 |
| Series B | Angel investor | $1,28 | 258.040 |
| Series C | VC | $2,38 | 374.997 |
You plan on issuing 1 million shares in the IPO. The valuation of the company in the IPO is based on a P/E multiple of similar companies which is 15x. The earnings for your company is expected to be $1 million.
What portion of shares will you own after the IPO?
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Finance Directors Handbook
Authors: Glynis D Morris, Sonia McKay, Andrea Oates
5th Edition
1566768691, 978-1566768696
