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IPO
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Edwin Quintanilla RJ: EdqMaster CO: Edqmaster Post Rating: 0 + / - Total Posts: 74 Karma: 9 Joined: May 3, 2012 |
Posted on Jul 7, 2012 I think I read a thread on this before but I could not find it. My suggestion is for the IPO Process to have a prospectus and then people can buy share of the IPO B2B style with all the intial money going to the company and then set a date when they can go public. In other words IPO propectus is only priced on speculation of the value of the company while when it goes public price adjust based on the actual value of the company. This way all the money comes from players and is not spawned. If all the share are not sold they are bought back by the company at the original price plus a premium that way they have an incentive to underprice much like how they do in real life. It would be best if there was a investment firm that did this but it is not required. That way if they want to reissue more share current shareholder can get first right of redemption so there share do not get diluted and the company can be resurrected if does not have cash or simply want to expand not that debt is not good its just sometimes its better to issue equity.
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