Increase in shares outstanding - sign of an IPO?
Salvador asks:
We own stock in a private company that we believe will go public in the next few years. We recently received a letter (pursuant to 603(b) or something) informing us of an increase in the number of outstanding shares in the company. There was no mention of a split or dividend. Can this be a sign of an impending IPO?
We own stock in a private company that we believe will go public in the next few years. We recently received a letter (pursuant to 603(b) or something) informing us of an increase in the number of outstanding shares in the company. There was no mention of a split or dividend. Can this be a sign of an impending IPO?
Related questions:
- Can a public company increase the amount of preffered stocks numbers? Patrice asks: I 've often seen company diluted common shares. Can they dilute the preffered shares as well? Is this...
- IPO questions? Christal asks: what is the IPO discount and comparable P/E? Suppose 14.0million shares outstanding before the IPO and a 4.0...
- I have been alloted 17 shares of reliance power IPO. How the bonus shares will be alooted me. Please suggest? Marni asks: I have been alloted 17 shares of reliance power IPO. As per declaration of company perhaps 9 (nine)...
- What determines the number of shares the company has to sell in an IPO?the money they need? Anisha asks: Lets say a company(400,000 shares) wants to raise $1 million by selling half of the company(200,000 shares). would...
- When can I sell my shares from an IPO? Lucina asks: I have shares from a private company that is going IPO in a few weeks. I used to...
Not necessarily. This could just be an attempt to raise some more capital and doing so through the existing shareholders of the privately held company. You will get first dibs on the new shares in order to maintain your weight in the company which prevents you from owning a smaller percent. It is really hard to say, however, if the company will be going public. I don’t know what company you are talking about and therefore don’t know any details. Right now is not a likely time for any company to be issuing shares via an IPO but it is possible.