Subsidiary IPO - is this a BUG?

[gamebak]

I am not entirely sure if this is a bug, but it seems so to me.

First problem when doing an IPO:
The parent company owns 100% of the subsidiary, so when you sell for 20% up to 40% for a subsidiary for an IPO, why does the money go to subsidiary if the parent company owned 100% of the stock?

Second problem, the market evaluation:
Let's say that before you IPO the parent company was worth 2billion dollars on the stock market, and after you IPO with a subsidiary let's say that you own 80% of it and another 1 billion. I'm not entirely sure if this is a bug, but the parent company will now be worth about 2.3 billions, instead of something closer to 3 billions. The evaluation seems to be incorrect.

[colonel_truman]

I am not entirely sure if this is a bug, but it seems so to me.

First problem when doing an IPO:
The parent company owns 100% of the subsidiary, so when you sell for 20% up to 40% for a subsidiary for an IPO, why does the money go to subsidiary if the parent company owned 100% of the stock?

Second problem, the market evaluation:
Let's say that before you IPO the parent company was worth 2billion dollars on the stock market, and after you IPO with a subsidiary let's say that you own 80% of it and another 1 billion. I'm not entirely sure if this is a bug, but the parent company will now be worth about 2.3 billions, instead of something closer to 3 billions. The evaluation seems to be incorrect.

Like your company issuing new shares, your sub goes public to raise cash to do whatever.