How do public shares work? - Company going public?

I am getting confused on exactly what it means for a company to be public. If people can help me understand this concept that would be great! Thanks in advance.
So say me and a friend each own 50% of a private company. Now that we want to take the company public first and later have a secondary offering:

1. My friend wants out by selling his shares in an IPO. So 50% of the company is going public. Lets say 50% is 500 shares and each share is sold for $10 dollars. Would that mean the market cap is $5,000? And since only 50% of the company is technically public, doesn't the market cap NOT represent the equity value of the whole company? How does that work? Is the market value of equity of public company mean 100% of the ownership of a company? Where are my shares calculated?

2.. I now want out of the company as well, does that mean I do a second offering of "old" shares and sell my stake? How would that work and how many shares would there be afterwards?

Hope people can help me out. Thanks!

 

Ipsam voluptatem et explicabo quo inventore sunt. Voluptatem autem quasi fuga molestiae quam a. Voluptas dolorem quis sapiente dolores.

Amet maiores consequuntur sint et. Et maiores recusandae et. Voluptates impedit labore voluptates qui.

Alias amet voluptas debitis eos et. Impedit at debitis sit consequatur. Expedita vel aliquam odio ut maxime numquam omnis.

Dolore aliquam dolor natus sapiente eum. Quis corrupti placeat fugit recusandae quidem. Totam possimus cupiditate placeat sapiente maxime.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Perella Weinberg Partners New 98.9%
  • Lazard Freres 01 98.3%
  • Harris Williams & Co. 24 97.7%
  • Goldman Sachs 16 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.9%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 05 97.7%
  • Moelis & Company 01 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.9%
  • Perella Weinberg Partners 18 98.3%
  • Goldman Sachs 16 97.7%
  • Moelis & Company 05 97.1%

Total Avg Compensation

June 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (21) $373
  • Associates (91) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (68) $168
  • 1st Year Analyst (206) $159
  • Intern/Summer Analyst (148) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
BankonBanking's picture
BankonBanking
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
Secyh62's picture
Secyh62
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
dosk17's picture
dosk17
98.9
8
kanon's picture
kanon
98.9
9
DrApeman's picture
DrApeman
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”