Minority IPO

Think of "minor" in the sense of someone underage: a kid. (That's not what "minority" means here, but roll with us for a second.) A child grows up and goes to college. But they aren’t completely on their own yet. Their parents still provide most of their support...the kid is living on their own, but they haven't fully reached adulthood.

That situation parallels a minority IPO.

A regular IPO (or initial public offering) involves selling stock on the public market for the first time. It's a way for companies that have reached a certain level of development to raise cash and reward early investors and employees.

In a minority IPO, the company selling the stock is part of a larger organization. A company is offering shares in a subsidiary...sending its kid to college, as it were.

However, the parent company is keeping majority ownership in the subsidiary. The shares offered only represent a minority stake (hence the name, "minority IPO"). The public shareholders can't control the firm, and there isn't enough stock available to launch a hostile takeover or any similar shenanigans. The parent company keeps control.

Like...if Mom and Dad cancel your emergency credit card because you haven't been calling them on Sundays.