Originally Posted by
Travailen
I also would note that most IPOs create different classes of shareholders
I'm referring specifically to shares that have basically no voting power as long as the Pritzkers hold at least 10% of the shares, if I figured that correctly. This is not standard at all. That's what I meant.
and if your concern is that the Pritzkers will enjoy a preferred position -- you are certainly correct that they will, but this is not unusual or part of some cynical plot to recoup their trust monies. And, I guess that is what I take most issue with... the tenuous connection people seem to make (not just you, but many others) between the IPO and the lawsuit between family members.
Cynical plot? there's nothing cynical about it. You said it was primarily for the company to raise funds for expansion. I'm simply pointing out that this it not accurate.
There's nothing cynical or clandestine going on here. The Pritzkers sold up to 38 million of there own shares. If there's a market for it, the company may sell up to 5.7 million shares and might raise as much as $125 million. There's a small fraction of the IPO. That's all based on information that was published publicly as part of the IPO.
Look, all I'm saying is that what you said was not correct and I was setting the record straight. This is what I think was incorrect:
Originally Posted by
Travailen
...
as I read it, the IPO is to grow the company and provide capital for expansion into existing and new markets, and to grow new brands (e.g. Hyatt Place and Andaz) -- not to line the pockets of the Pritzkers or deprive the workers their due.
I think the facts about why they had the IPO speak for themselves. It's all there in the prospectus and the articles that were cited. Fact: 38m Prizker family shares offered, and possibly (while we're at it) 5.7m company shares offered, maybe, that will net a small fraction of the total amount raised in the IPO.
I am pleased that the IPO was successful, that the market has shared my view, and believe this has to do with the underlying value proposition of the Hyatt brand.
There are people out there that think they will make money off the shares. That is true. But see also: Barnum. hahaha.
I think they might make money because those shares were offered at a discount to the assumed value of the company. But there's a lot of unknowns in the future. Which is why they had to issue them at such a discount.