Define: Pre-New Money Valuation
the result of multiplying the total number of Ordinary Shares in issue immediately after the IPO (but excluding any new Ordinary Shares issued upon the IPO) by the subscription price per share (including any premium) in
the result of multiplying the total number of Ordinary Shares in issue immediately after the IPO (but excluding any new Ordinary Shares issued upon the IPO) by the subscription price per share (including any premium) in respect of new Ordinary Shares issued at the time of the IPO;.
Relevant Circumstances
- When valuation at IPO is calculated before new money is reflected in the share count
- If conversion ratios or dilution calculations rely on the pre-money figure
- Where investor returns are tied to a defined pre-IPO valuation