Nationwide Markets is a diversified company with many divisions. It is also the sole shareholder of a wholly owned subsidiary. Management has decided to implement an IPO offering for 25 percent of the ownership of the subsidiary. Which one of these terms applies to this offering?

Question

Quizplus · Accepted Answer

An equity carve-out is when a parent company sells a portion of one of its subsidiaries through an IPO, while still retaining a controlling interest in the subsidiary. This would be the appropriate term to apply to the situation described in the question.

Nationwide Markets Is a Diversified Company with Many Divisions