With this regulation SEC try to ensure minimum 10 % of listed company holdings to be with public.
What are the shares will have direct impact on this rule ???
UDPL is a possible candidate for this...
what else....
Pls share your thoughts ....
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Bolinger wrote:Piras, My understanding is :
During listing , IPO some companies do not put 100 % of the owenership to market. Ex company may keep 80 % of share capital among the inital owners and issue the balance 20 % to market where public like us can buy....
They may be doing this to safeguard possible take over in market. Also the IPO money they are going to collect from market may well less than the initial capital invested by key owners.
we can see this is in major share holder distribution details.
SEC is trying to ensure at least 10 % ownership is among public for listed companies... This may be to create good corporate governance...etc
with this mandatory compliance rule,companies who do not meet min 10 % public ownership, they have to dilute their ownership at least max to 90 % and sell out the balance to public share holders.
I think they will try to sell high rather than at low price to maximuse thir gain...
Hence share price can go up for these kind of shares....
Bolinger wrote:Piras, My understanding is :
During listing , IPO some companies do not put 100 % of the owenership to market. Ex company may keep 80 % of share capital among the inital owners and issue the balance 20 % to market where public like us can buy....
They may be doing this to safeguard possible take over in market. Also the IPO money they are going to collect from market may well less than the initial capital invested by key owners.
we can see this is in major share holder distribution details.
SEC is trying to ensure at least 10 % ownership is among public for listed companies... This may be to create good corporate governance...etc
with this mandatory compliance rule,companies who do not meet min 10 % public ownership, they have to dilute their ownership at least max to 90 % and sell out the balance to public share holders.
I think they will try to sell high rather than at low price to maximuse thir gain...
Hence share price can go up for these kind of shares....
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