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This is probably not the right place to ask but this question is flowing through my head right now and I need a confirmation.
Can you do a private investment in public equity and then sell the shares in the public market (stock market)? This sounds intuitively yes but wouldn't there be a lot of issues dealing with different classes of shares, voting rights, and whatnot.
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Isn't the PIPE, similar as placements, and/or married deals, without anything to do with classes of shares?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡
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Well from Investopedia:
DEFINITION of 'Private Investment in Public Equity - PIPE'
A private investment firm's, mutual fund's or other qualified investors' purchase of stock in a company at a discount to the current market value per share for the purpose of raising capital. There are two main types of PIPEs - traditional and structured. A traditional PIPE is one in which stock, either common or preferred, is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, issues convertible debt (common or preferred shares).
It can have different classes of shares I assume according to Investopedia.
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(30-09-2015, 08:38 PM)tau281290 Wrote: Well from Investopedia:
DEFINITION of 'Private Investment in Public Equity - PIPE'
A private investment firm's, mutual fund's or other qualified investors' purchase of stock in a company at a discount to the current market value per share for the purpose of raising capital. There are two main types of PIPEs - traditional and structured. A traditional PIPE is one in which stock, either common or preferred, is issued at a set price to raise capital for the issuer. A structured PIPE, on the other hand, issues convertible debt (common or preferred shares).
It can have different classes of shares I assume according to Investopedia.
I don't know the term, "PIPE" due to my limited exposure. The "PIPE", according to the description, is applicable to all i.e. preference, ordinary shares, or CB. It should also applicable to normal corporate bond allocation too, I guess. The "classes" isn't a qualifier, is what I am trying to highlight
Isn't the same as share placement exercise, as we normally use?
“夏则资皮,冬则资纱,旱则资船,水则资车” - 范蠡