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Discussion » Statements » Rosie's Corner » When a private company goes public how does it decide how many shares to offer and at what price ?
RosieG

When a private company goes public how does it decide how many shares to offer and at what price ?

Posted - March 18, 2019
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Responses


  • 6023
    The price is set by the market.

    The number of shares is totally arbitrary.
    They can use whatever formula they decide makes sense to their owners.
    Sometimes they will use the estimate of what the shares will be worth, and figure how much they want to raise, to estimate how many shares they need to issue.
      March 18, 2019 11:35 AM MDT
    2

  • 46117
    I know you will be SHOCKED but I did not know the answer to this.  Thank God for you.  What I know about finances could fill the head of a pin.  
      March 18, 2019 12:36 PM MDT
    0

  • 113301
    So there is no real guideline then Walt? I didn't know it was that iffy! Thank you for your reply. I appreciate the info!  :)
      March 18, 2019 1:45 PM MDT
    0