|
Posted by Andy F. on January 22, 2008, 8:36 am
Please log in for more thread options
>I was looking into a random IPO recently. The company that I was
> reading about was VIT. Their market cap (MC) today is ~$218M.
> According to http://www.tradingmarkets.com/.site/news/Stock%20News/907091/
> ,
> their successful IPO raised $65M.
>
> According to
>
http://www.streetinsider.com/IPOs/VanceInfo+Technologies+(VIT)+Sees+IPO+Price+of+$7.50-$9.50/3161843.html
> their IPO price was $8.50/share, and they sold 7.65M shares.
> Therefore, they raised exactly $65,025,000 worth. This occured on
> December 14th, 2007, which was about one month ago.
>
> However, today, the MC of this company is ~$218M, and the share prices
> are *LESS* than they were during the IPO. They price at $6.07/share
> now.
>
> Moreover, on their IPO, there were 7.65M shares, but today, according
> to http://finance.google.com/finance?q=vit , there are 36.05M
> shares.
>
> Here are my questions:
> 1. Since they didn't have any secondary offerings, it really seems
> that they released 36.05M shares during their IPO(?). How do these
> analysts figure out that they raised $65M and not $306.4M (36.05M *
> $8.50/share) ?
> 2. Why is there such a HUGE discrepancy between 36.05M shares (which
> is what they have today) and 7.65M shares (which is how much they sold
> at IPO)?
I would guess that there were 28.4M privately owned shares before the IPO.
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap