sorry to ask this very basic question about an IPO.. i got 2 different answers after searching for some time to the same question.. hope can be enlightened here.. hehe..
for simplicity sake, we assume that there is only one owner of the business.. he owns 100% of the shares, of course, and now he is planning to IPO it..
let say he chooses to IPO only 60% of the company.. does that mean that he will have the remaining 40% to himself (1) FREE or (2) does he need to buy the 40% at some very low value?
for simplicity sake, we assume that there is only one owner of the business.. he owns 100% of the shares, of course, and now he is planning to IPO it..
let say he chooses to IPO only 60% of the company.. does that mean that he will have the remaining 40% to himself (1) FREE or (2) does he need to buy the 40% at some very low value?