SSC, My knowledge when it comes to IPO's is very limited. However, I think this is how it works. The spinoff will approach a brokerage firm that specializes in IPO's to setup the IPO for a percentage commission on the shares that are purchased by the public. They will analyze what they feel the value company is worth (and I think that includes its future worth) and then offer so many shares to the company based on their estimate. Once sold, the price then is set by the investing public.
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