3Com Corporation (COMS) Message Board

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Technology Stocks : 3Com Corporation (COMS)

COMS 0.00130

-18.8%

Nov 7 11:47 AM EST

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To: opalapril who wrote (38124)	1/12/2000 2:20:00 PM
From: The Phoenix	Read Replies (1) of 45548

Interesting post. Fact is the ratio is undetermined - in fact we don't even know how many shares will be offered yet. But to be honest I'm a little confused as to why the ratio is important. 20% of the shares (how ever many) will be sold on the open market at the IPO. It looks like the price for these shares will be $100M (from the S1). So that means that the remaining shares will be worth $400M (80%) - assuming that shares at the IPO are trading at IPO price. However they will probably bid up the market value of the company to 10 times that (just a guess) so the shares that COMS will hold will be worth (for purposes of the example) $4B. When COMS distributes these shares they will distribute to shareholders of record based upon the percentage of the company you own. So the share ratio is not the issue - the share value is what matters. That is what's the difference between 100 PALM shares at $20 versus 1000 PALM shares at $2. Right? What am I missing? OG

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