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26/07/18
06:56
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Originally posted by Hollycozy
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I'm not the best an analysing these IPOs but maybe someone a bit more experienced can help (still learning)
Costs of the offer
Costs of the offer are disclosed as 10% (sounds reasonable) BUT if you dig deeper they are actually 13% (as they have existing cash), is this correct?
I also think it might be much higher as
- Advisor is also getting 4m shares (worth $800k at listing price)
- Advisor is also getting 4m options (lets say worth 5c each, another $200k)
- Advisor employees are getting $200k p.a. (MD) and another undisclosed sum (CFO)
- MD and CFO also receive options and performance shares
So 1.391 (disclosed costs of the offer) + 800k + 200k + 200k + (say $150k) + 800k (CFO performance shares, not tied to revenue) = 3.5m on 11m raise
So its actually 32% of the the funds raised, or in other words if you put $1 you get 68c of company?
Can someone clarify?
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See my analysis a few months ago, still relevant today. Also, according to his Linkedin, he was a real estate agent up to a few years ago, then reinvented himself as a corporate advisor / venture capitalist. Not very successfully if you judge success by past performance of his old clients like Thred