I assumed the success of the subsidiary would be reflected in the share price of the parent company?
I own shares in a parent company that has a wholly owned subsidiary(a graphite mining company) that is going public in June. They say "shareholders will retain exposure to the graphite assets and will be offered shares as part of the Initial Public Offering (IPO)"
Is this just taking on unwanted risk looking to buy shares in a wholly ownded subsidiary or would the parent company not likely benefit much in share price appreciation on any future success?