Minority IPO


DEFINITION of 'Minority IPO'

An initial public offering in which a parent company spins off one of its subsidiaries or divisions, but retains a majority stake in the company after issuance. This means that after the public offering, the parent company will still have a controlling stake of the new public company.


The parent company may retain this majority stake forever or may slowly dissolve their ownership over time. This type of IPO allows the company to raise funds, accessing the value of the subsidiary, to fund its own operation or return value to shareholders.

  1. Issuer

    A legal entity that develops, registers and sells securities ...
  2. Final Prospectus

    1. The final version of a prospectus for a public offering of ...
  3. New Issue

    A reference to a security that has been registered, issued and ...
  4. Public Offering Price - POP

    The price at which new issues of stock are offered to the public ...
  5. Initial Public Offering - IPO

    The first sale of stock by a private company to the public. IPOs ...
  6. Subsidiary

    A company whose voting stock is more than 50% controlled by another ...
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  1. What are the differences between affiliate, associate and subsidiary companies?

    All three of these terms refer to the degree of ownership that a parent company holds in another company. In most cases, ... Read Full Answer >>
  2. When did Facebook go public?

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  3. Can mutual funds invest in IPOs?

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  4. How does investment banking differ from commercial banking?

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  5. What kind of assets can be traded on a secondary market?

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  6. Why would a company decide to utilize H-shares over A-shares in its IPO?

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