03-01-2006, 12:57 AM
For the one which isn't listed, their shareholders would have to go through the process of sale documents etc. Take this example as a proxy for an IPO - the only difference here is we are not given whether they are going to list their shares on an exchange.
On the other hand, the one which is listed, why would their shareholders want others to have a view on their investments. Also, they wouldn't sell the 100% amount at one go - think of the liquidity issues. If a firm is listed, majority of their trades would go through the exchange but of course, some large shareholders might use their investment as collateral for their other acquisations - think about M&A activity and its financing terms.
Hope it clears the idea.
DT
On the other hand, the one which is listed, why would their shareholders want others to have a view on their investments. Also, they wouldn't sell the 100% amount at one go - think of the liquidity issues. If a firm is listed, majority of their trades would go through the exchange but of course, some large shareholders might use their investment as collateral for their other acquisations - think about M&A activity and its financing terms.
Hope it clears the idea.
DT
