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Let's say a co-founder who worked (but no longer does) for a company prior to it going public still owns 1% (100,000 shares of 10,000,000 total) of the company.

If the company does an IPO and offers 25% of the company (2,500,000 shares) and gets $10/share, how would the ex-employee / co-founder that owns 100,000 shares sell those shares for $10/share?

What determines which 25% of the shares are sold and does that make the founders shares sellable on the market or other platform?

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If the company does an IPO and offers 25% of the company (2,500,000 shares) and gets $10/share, how would the ex-employee / co-founder that owns 100,000 shares sell those shares for $10/share?

It all depends on how the IPO is structured. It can be that new shares are created. Or existing shares of founders are sold. Or a mix of both. This is decided by the founders [Majority of owners] as to what the best option and right mix.

If the co-founders shares are vested, they are eligible to start selling this once the IPO is complete and the company gets listed. So in such cases the co-founder may not be able to get the IPO price, but would get whatever price the market offers.

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