Southcorp Capital Inc (STHC)

[crabclamjohn]

Let me ask you something, IPO’s are very expensive and hard to do from what I have heard. So some private companies decide to go this route to become public. The part I don’t understand is in an IPO the company sells common shares which they receive the proceeds, right? This route the people who already own shares in the shell have already bought their common share so the company won’t get any proceeds unless they issue new common shares. That’s a big difference especially when a company has lots of value. If I’m way off base please correct me?