Post by
nozzpack on May 09, 2023 7:53am
Minimum IPO Price Assuming Two acquisitions
This would require at least an IPO of $100 million US which is about $135 million cad.
Lets see what the minimum IPO price would be under the constraints that 54% of the ownership of Persistence must remain in the hands of MJS and its JV partner who currently own 100% .
Current market cap = $95 million cad
Persistence shares o/S .......10 billion.
Persistencd shares available for IPO........4.6 billion
IPO Size...........$135 million CAD
IPO per share ........$135 million / 4.6 billion = $ 3 cents / share
Consolidation ratio @ 80 m shares o/ s 14.6 billion / 80 m = 183
Consolidated market cap at IPO less cash = 3 cents times 183 = $550 m cad
Ditto including $70 m in cash = $620 million cad.
MJS share at 50.5 % = $315 million
Minimum MJS share price at listing = $315 m / 1.05 billion = 31 cents cad per share.
Cash will be much higher at listing, and current expansion development will be partially completed.
Public ownership must be at least 25%.
Will they list before share consolidation ?
Perhaphs not as being listed at 3 to 5 cents cad ....15-20 remembi....will enable many small investors to acquire shares
Comment by
rbg3006 on May 09, 2023 9:40am
Can anyone follow your calculations? Suddenly 14.6 billions appear. Where are they from?