VALUATION AND FLOAT
IPO Dilution and Free-Float Analysis
Calculate IPO dilution, fully diluted shares, free float and the effect of options, warrants, convertible securities and over-allotment shares.Updated 2026-08-24 · Evidence-led methodologyWhy can the headline IPO market value understate dilution risk?
Headline market capitalisation often uses only basic shares outstanding. A complete IPO analysis reconciles post-offering shares with options, warrants, restricted stock, convertible securities and over-allotment shares before comparing valuation or future supply.
WHAT TO CHECK
Three checks that turn filing data into an investment conclusion
- 01
Share-count bridge
Reconcile pre-offering shares, new primary shares, converted securities and the over-allotment option.
- 02
Fully diluted basis
Add in-the-money options, warrants and other potentially dilutive instruments with the assumptions clearly labelled.
- 03
Tradable float
Separate shares outstanding from shares that can actually trade at listing and after each registration or lock-up event.
EVIDENCE BASIS
Use the filing, not an unsupported estimate.
If a required figure is not published, IPO177 identifies the missing source instead of substituting a fabricated value.
- Capitalisation table
- Dilution section
- Equity incentive plans
- Outstanding warrants and convertible securities