Equity carve-out

Equity carve-out (ECO), also known as a split-off IPO or a partial spin-off, is a type of corporate reorganization, in which a company creates a new subsidiary and subsequently IPOs it, while retaining management control.[1][2] Only part of the shares are offered to the public, so the parent company retains an equity stake in the subsidiary. Typically, up to 20% of subsidiary shares is offered to the public.

  1. ^ "equity carve-out - Business Definition". Your Dictionary. Archived from the original on September 17, 2013. Retrieved September 1, 2013.
  2. ^ Investment Dictionary: Carve-out

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