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Technology Stocks : Luminent, Inc. (LMNE) -- Ignore unavailable to you. Want to Upgrade?

To: D.E. Lee who wrote (6)	7/29/2000 1:20:25 PM
From: Stephen Yarger	Read Replies (1) \| Respond to of 82

Well, it does make sense that the MRVC ownership percentage went down after the filling, but I don't think that 10% is a high enough percentage for company insiders. If LUMN only owns 10% of their own company then where do the shares for distribution at the IPO come from? If they authorized 140 million shares (as someone said on MRVC board, I haven't confirmed this yet) then 10% would be only 14 million shares. A company with 140 million outstanding shares would usually distribute at least 14 million at the IPO which would leave LUMN insiders with 0. Even if they didn't distribute 14 million you have to assume that they would distribute at least 6 million shares for the IPO which would leave a tiny 8 million shares or 6% insider ownership. I don't know of any public company that has an insider ownership that low and I don't think it would be a good idea because LUMN employees would lack stock option incentives. In short it just doesn't make sense that MRVC could still own 90% of a company that goes public on its own. Is there something that I am missing?