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Freescale Semiconductor, Ltd. Message Board

  • paydaymalone paydaymalone May 28, 2011 5:23 PM Flag

    $3.6 Billion Market Cap?

    How does Freescale only reap $733 million from the IPO and yet the market cap is 3.6 billion? They must of issued a sload to current management? They issued zero to employees. Maybe Rich's true colors are about to be exposed!

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    • You DO know a company can do an IPO and not sell ALL it's stock right?

      I imagine the original private investors maintained quite a pile for themselves.

      Or did you perhaps believe that ALL the shares would be sold and then the original investors would have to buy their share in the company back? If so that would be highly . . . . ignorant. (best word I could think of).

      No, one of the main purposes of an IPO is to value the stock so that investors can realize gains at market prices on stock that was previously only privately traded. For instance I own around 26k shares of a privately held company. Right now I can't really trade them because there is no public market. Once that company DOES go public my shares will be replaced with an equivalent amount of my percentage of the IPO shares and then transferred to my brokerage account where later I could sell them. Hence my shares would NOT have been in the shares sold at the IPO. Same with other shares held particularly by current employees (who can't start trading on the open market for some time after the IPO) and former ones.

      So, look for those original investors to be holding all those shares you can't account for, and pay more attention to the float when you look at the IPO share numbers to find out if there are more shares (investors taking profits) or less (people taking stock off the table), and that will give you some idea if shares are trading into the market, or are being taken out and held.

    • Yep, Riches true Colors finally Show! IPO push, no personal share ownership disclosed! Someone should ask the question during his final Town Hall Meeting Tuesday!

    • C'mon Rich are you another Michelle gold digger? 733 mil raised yet 3.6 billion mkt cap? No employees issued shares? Where/What is the beef? Town Hall Question?

      Market capitalization (often market cap) is a measurement of size of a business enterprise (corporation) equal to the share price times the number of shares outstanding (shares that have been authorized, issued, and purchased by investors) of a publicly traded company

      • 1 Reply to paydaymalone
      • employees being issued shares would be a form of a bonus, would it not? Could not the employees buy shares in the open market? Freescale is in debt, we finally got meager pay raises after nothing for 2-3 years. No one was expecting free shares! They are however coming up with an purchase plan for 2012. Not that I care...

        I don't know how they are valuing the market cap, or the private stake for that matter.. The offering was small as you said, but from what I read, Blackstone still holds what they held, minus some portion. I mean, it's not like they got rid of the debt, Blackstone is still on the hook. They can still get screwed if the economy doesn't pick up big time (which we know isn't going to happen). I know that sometimes Yahoo shows a market cap that is smaller than what it should be, due to different stock classes (LODE, the Comstock metals company, is like that).

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