In: Accounting
a. Total value of your equity stake in the business after series C round of financing:
Series | Total value of equity(Amount in GHS) |
A | 500,000*1= 500,000 |
B | 10,00,000*2= 20,00,000 |
C | 20,00,000*3.50= 70,00,000 |
Total | 95,00,000 |
b)Calculation of total amount raised through IPO
Amount raised through IPO= No of shares raised through IPO* Issue price per share
= (65,00,000*5.3)
=344,45,000
c)Total number of shares that will be issued for the purposes of the IPO
Total number of shares for IPO | 65,00,000 |
LESS:Quarter shares sold (500,000/4) | 125,000 |
Total number of shares in IPO | 63,75,000 |
d)Percentage of the firm after the IPO:
SERIES A | (500,000-125,000)=3750000 |
SERIES B | 10,00,000 |
SERIES C | 20,00,000 |
IPO | 65,00,000 |
LESS:Quarter shares sold | 125,000 |
TOTAL SHARES A | 97,50,000 |
Own Holding(500,000-125,000) B | 375,000 |
Shareholding (B/A*100) | 3.85% |
e) Reason possibly accounted for the share price decline are as follows:
1)MAJOR SHAREHOLDIN SELLING: Some institutional sharholders target to sell their shareholding at a particular date or at a given price.This result supply for sale usually depresses the share
2)NEGATIVE RESEARCH NOTES: Negative research can sometimes lead into decrease into the stock price
3)FAULTY NUMBERS:This is also one of the reason why there is decrease in the prices of the stock
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