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HMB2010

12/05/14 9:06 PM

#5537 RE: HMB2010 #5534

HB, We will all know very soon where KEYO falls into Dr. Shiong's plans....i edited prior post.....because I believe Dr. Soon Shiong has plans NO ONE can fathom based on his history of mega deals.....he is amazing! Some of us will be happy and probably rock it all night long while others will be reeling in disbelief. C'mon Doc, tell us Soon!
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TrueTrades

12/05/14 9:16 PM

#5539 RE: HMB2010 #5534

Excellent post HMB2010! He will not court Wall St with an IPO. His companies would be set up as corporations if that was his plan.

Equity carve-out (ECO), also known as a split-off IPO or a partial spin-off, is a type of corporate reorganization, in which a company creates a new subsidiary and subsequently IPOs it, while retaining management control.[1][2] Only part of the shares are offered to the public, so the parent company retains an equity stake in the subsidiary. Typically, up to 20% of subsidiary shares is offered to the public.

The transaction creates two separate legal entities, the parent company and daughter company each with their own boards, management teams, financials, and CEOs. Equity carve-outs increase the access to capital markets, enabling carved-out subsidiary strong growth opportunities, while avoiding the negative signaling associated with a seasoned offering (SEO) of the parent equity.

$KEYO