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. Parent Company

    A company that controls other companies by owning an influential ...
  2. Wholly Owned Subsidiary

    A company whose common stock is 100% owned by another company, ...
  3. Associate Company

    An associate company is a corporation whose parent company possesses ...
  4. Taxable Spinoff

    A divestiture of a subsidiary or division by a publicly traded ...
  5. Unconsolidated Subsidiary

    An unconsolidated subsidiary is treated as an investment on a ...
  6. Spin Out

    A spin out is a type of corporate realignment involving the separation ...
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  1. Are Subsidiaries Included in Company Statements?

    Learn how foreign and domestic subsidiaries are listed on the balance sheet of the parent company. Read Answer >>
  2. How do spinoffs impact investors in the both the parent and subsidiary companies?

    Learn about how spinoffs affect investors in both the parent company and the subsidiary and what strategies investors use ... Read Answer >>
  3. What is the difference between a subsidiary and a sister company?

    Discover the differences between subsidiary companies and sister companies, and understand how both are related to parent ... Read Answer >>
  4. How do wholly owned subsidiaries operate in the European Union?

    Find out how wholly owned subsidiaries and their parent companies are treated in the European Union, specifically regarding ... Read Answer >>
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