### IPO for the new name. Did we just get hosed?

Posted:

**Mon Mar 26, 2012 3:10 pm**Well, apparently the former Inland Western now Retail Properties of America has re-started their IPO in greater interest, having done the dividend of Class B shares and erasing most of the existing stock on a 10 to 1 reverse split. (note that the previous IPOs have done a 4 to 1, including the former I.W. proposed S-1. And best of all, they did this with the split first So, if I 'm reading this right, by way of example:

On day 0 I have 1000 shares (nominally worth $5,750) of Class A.

On day 0.5,I have 100 shares of Class A. (Presumably, they would now be worth 57.50 a share.)

On day 1, I also have 100 shares of Class B-1, B-2 and B-3 (worth nothing util 6, 12 or 18 months from the listing), but theoretically worth the same as the A.

So at the end of all this, I have 400 shares of stock. In theory, this is still worth $5,750, but each share would be worth $14.375.

Now, would I care that I have 400 pieces of paper worth $5,750 or if I had 1000 pieces? No.

But, they project an IPO price of $10-12. So, BEST case scenario is that I will have $4,800 worth of paper of which $1,200 is liquid. Yippee.

Someone correct me if I read this wrong. Here's a link to the SEC filing.

http://www.snl.com/Cache/1001164616.PDF?D=&O=PDF&IID=4087051&Y=&T=&FID=1001164616" onclick="window.open(this.href);return false;

On day 0 I have 1000 shares (nominally worth $5,750) of Class A.

On day 0.5,I have 100 shares of Class A. (Presumably, they would now be worth 57.50 a share.)

On day 1, I also have 100 shares of Class B-1, B-2 and B-3 (worth nothing util 6, 12 or 18 months from the listing), but theoretically worth the same as the A.

So at the end of all this, I have 400 shares of stock. In theory, this is still worth $5,750, but each share would be worth $14.375.

Now, would I care that I have 400 pieces of paper worth $5,750 or if I had 1000 pieces? No.

But, they project an IPO price of $10-12. So, BEST case scenario is that I will have $4,800 worth of paper of which $1,200 is liquid. Yippee.

Someone correct me if I read this wrong. Here's a link to the SEC filing.

http://www.snl.com/Cache/1001164616.PDF?D=&O=PDF&IID=4087051&Y=&T=&FID=1001164616" onclick="window.open(this.href);return false;