Hi All
Probably a dump question but I have been curious to know.
Just say my company is ABC Pty, and when I listed the company in jan, I issued 2 shares, $1 each. So just say I received $2 that month.
In Feb, due to good news, my share in the stock market surged to $4 per share. So the market value of the 2 shares I issued, is now $8.
In Mar, I decided to delist the company, and obviously I need to refund to the shareholders, my question is, do I pay them back the initial value of $2 or $8?
Share price question
Re: Share price question
$8 or even more due to control premium
Re: Share price question
Thanks Mark, what if tye total shares I owed to to investors, is larger than the total net assets (especially cash) I have, how can I effort to "buy back"?
Just say below is company BS
Cash 100
Liability -50
Retained earnings -20
Owner cap -28
Ordinary share -2 (but on stock market, the value is 1000 due to some reddit speculation maybe)
Just say below is company BS
Cash 100
Liability -50
Retained earnings -20
Owner cap -28
Ordinary share -2 (but on stock market, the value is 1000 due to some reddit speculation maybe)
Re: Share price question
Why would delisting mean you can 'refund' shareholders?
Re: Share price question
@sowrudy - It's more a question of structuring the transaction and that's not my expertise
@JRSB - sorry but I don't understand your last post
@JRSB - sorry but I don't understand your last post
Re: Share price question
PS. and what's the point of buying the shares back if their market value is inflated? I'd rather issue more!
Re: Share price question
question was for poster.... to me, delisting means taking a company private, so wondering why that means you can 'refund' shareholders. perhaps the investment was more like debt. 'obviously I need to refund shareholders' isn't obvious to me!