> Unlike an initial public offering, the resale by the Registered Shareholders is not being underwritten by any investment bank. The Registered Shareholders may, or may not, elect to sell their ordinary shares covered by this prospectus, as and to the extent they may determine. Such sales, if any, will be made through brokerage transactions on the New York Stock Exchange (the “NYSE”) at prevailing market prices.
So essentially early investors will be the ones [potentially] selling. The pricing should be highly volatile.
But what if NONE of the early investor wants to sell? So there are no shares afloat? Or until a ridiculously high price before they start selling?
Let say it is valued at $20B with shares at $20. What is stopping an early investors selling 1 shares at $1000, market valued at 1 Trillion, and get someone to buy that 1 shares?
My point is since there is no new shares, unless the early investor are really rushing to offload. Selling would be limited.
> Unlike an initial public offering, the resale by the Registered Shareholders is not being underwritten by any investment bank. The Registered Shareholders may, or may not, elect to sell their ordinary shares covered by this prospectus, as and to the extent they may determine. Such sales, if any, will be made through brokerage transactions on the New York Stock Exchange (the “NYSE”) at prevailing market prices.
So essentially early investors will be the ones [potentially] selling. The pricing should be highly volatile.