Changed IPO Conditions
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Changed IPO Conditions
The conditions a corporation must fulfill before it can perform an IPO have been changed and made easier.
The required market value minimum is increased from 350 B to 450 B. This is a higher requirement but a very large number of corporations have a market value that is even much higher.
The required PE ratio level is increased from 24 to 48. This is a steep reduction in the required profitability.
(PE ratio is the price per share, divided by the profit per share. A higher PE ratio means that the corporation is less profitable).
The change means that although a higher market value is required the corporation PE ratio requirement are relaxed which will make it much easier for corporations to reach the conditions and make the IPO.
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