Well, IPO day has come and gone with about 20,000 shares sold. I'm doubting that the next six weeks are going to see an additional 30,000 sold to reach the self-imposed minimum limit of 50,000 to call the IPO a success.
It's a bit too early to call it a flop but I hope that, if/when this IPO fails, the company will realize the folly of its ways and come back with a less one-sided public offering.
Lol, if 20k shares have really been sold, and the d00d has any scratch/connections, he'll buy the remaining 30k himself. Profit.
The company/founders weren't willing to put up any capital before the IPO, why would they now? Also, if you buy 30,000 shares so that the company can acquire 20,000 shares, that's not a net gain.
You're forgetting that "the founders" will get both the coin spent on the 20k shares, and the coin they have "invested" by buying the 30k shares. Minus the Havelock fees, of course.
That's a net gain.
*Think of it like this:
1. If 50k pennies are in the pot, you win the pot.
2. Other players have anted up 20k pennies.
3. You add 30k pennies to the pot, and rake it in.
4. Profit. Since you won the pot, you get to take back the money you threw in. Minus the house edge (Havelock)
You're correct, they would just have to borrow the funds for 30,000 shares.