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The only real benefit depositors get is that they are the first ones allowed to buy shares in the offering while the public only gets to buy any unsold remainder if there is any. Minority shareholders then get issued shares at an exchange ratio that keeps them at the same ownership percentage as before the offering, but they do not have to put up any new capital. These offerings happen at a price that is determined mainly by tangible book value, earnings and capital ratios compared with previous transactions and public comps.

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