I am coming across as a capital S Sabine when I hesitate at that Bumpken, but even at a purchase price of 25c a share in the IPO, if that sale was the escrowed shares it still netted the vendor or vendors $4.69m.
Not to be sneezed at.
And you will recall 5GG went live on the ASX on January 29 last year, putting the sale/s - on February 2, 2022 into a lower tax bracket.
- A saving not to be sneezed at either.
And it is quite likely, even very likely that the escrowed shares were NOT bought for 25c each in the IPO but were seed capital issued pre IPO for a token amount or were even free.
-In which case sneezing at the profit would be COMPLETELY off the agenda.
I read Pentanet has been around since 2017 so company shares have existed since that time at whatever value, and pre IPO there was likely much chopping and changing of whatever share structure was in place and carving off of however many from whichever owners to be sold in the IPO and at mates rates to other ‘seed investors’ pre IPO (But do your own research on this).
-Looked at from this perspective it is even possible the price was managed down to this level to genuinely leave something in reserve for buyers who may have been organised months back.
I don’t know if time will tell who bought the shares, but time will definitely tell whether 39c was a good price.
And I am definitely no expert, just someone who has been trying to watch and learn a bit since I bought largely into a different company back in 2016.
I would appreciate if anyone wiser who happens to read this post could nutshell the whole seed capital IPO escrow thing more clearly.
