Jerry, Thank you for the reply,
According to Zapata, the new IPO will be of 6 Million shares.
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<"It is anticipated that the initial public offering price will be between $14 and $16 per share. In the offering, four million shares are to be sold by Omega Protein and two million shares are to be sold by Zapata Corporation. Omega Protein plans to use a portion of its net proceeds to repay approximately $33.3 million of intercompany indebtedness owed to Zapata Corporation. The remaining net proceeds to Omega Protein will be used for working capital and general corporate purposes. Omega Protein will not receive any of the proceeds from the sale of common stock by Zapata Corporation. Following completion of the offering, Zapata Corporation would own approximately 75% of the outstanding Omega Protein common stock">
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Correct me if I am wrong.....If we take 6 million shares with an IPO price (lets take $14-$16$) and will make it $15.00 X six mill. = $90 million (*25%)
Take $33 million to pay indebtedness, which goes to Zapata anyway. ..If we take the all $ 90 million in cash, and on the top of that, they will still own( * 75%) of omega proteins. If my calculation is rigth, the company will have a total market cap of $460 million. , just with the marine protein asset alone. If this is the case,( IMO) Zapata has to be worth (MCV) $16.00 per share What's wrong with this picture? Comment? |
