Questions about an IPO and subsequent Market Cap


T

tangent1.57

I was looking into a random IPO recently. The company that I was
reading about was VIT. Their market cap (MC) today is ~$218M.
According to http://www.tradingmarkets.com/.site/news/Stock News/907091/
,
their successful IPO raised $65M.

According to http://www.streetinsider.com/IPOs/V...T)+Sees+IPO+Price+of+$7.50-$9.50/3161843.html
their IPO price was $8.50/share, and they sold 7.65M shares.
Therefore, they raised exactly $65,025,000 worth. This occured on
December 14th, 2007, which was about one month ago.

However, today, the MC of this company is ~$218M, and the share prices
are *LESS* than they were during the IPO. They price at $6.07/share
now.

Moreover, on their IPO, there were 7.65M shares, but today, according
to http://finance.google.com/finance?q=vit , there are 36.05M
shares.

Here are my questions:
1. Since they didn't have any secondary offerings, it really seems
that they released 36.05M shares during their IPO(?). How do these
analysts figure out that they raised $65M and not $306.4M (36.05M *
$8.50/share) ?
2. Why is there such a HUGE discrepancy between 36.05M shares (which
is what they have today) and 7.65M shares (which is how much they sold
at IPO)?
 
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A

Andy F.

I was looking into a random IPO recently. The company that I was
reading about was VIT. Their market cap (MC) today is ~$218M.
According to http://www.tradingmarkets.com/.site/news/Stock News/907091/
,
their successful IPO raised $65M.

According to
http://www.streetinsider.com/IPOs/V...T)+Sees+IPO+Price+of+$7.50-$9.50/3161843.html
their IPO price was $8.50/share, and they sold 7.65M shares.
Therefore, they raised exactly $65,025,000 worth. This occured on
December 14th, 2007, which was about one month ago.

However, today, the MC of this company is ~$218M, and the share prices
are *LESS* than they were during the IPO. They price at $6.07/share
now.

Moreover, on their IPO, there were 7.65M shares, but today, according
to http://finance.google.com/finance?q=vit , there are 36.05M
shares.

Here are my questions:
1. Since they didn't have any secondary offerings, it really seems
that they released 36.05M shares during their IPO(?). How do these
analysts figure out that they raised $65M and not $306.4M (36.05M *
$8.50/share) ?
2. Why is there such a HUGE discrepancy between 36.05M shares (which
is what they have today) and 7.65M shares (which is how much they sold
at IPO)?
I would guess that there were 28.4M privately owned shares before the IPO.
 

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