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It seems to only work well with largely popular companies. Google's auction IPO was pretty successful, Rackspace was not so much.
by bduerst 11y ago
It seems to only work well with largely popular companies. Google's auction IPO was pretty successful, Rackspace was not so much.
- mikeash 11y agoWas Rackspace's trouble because of the auction, or just because of the company and market conditions? (In hindsight, August 2008 was probably not the ideal time for an IPO.) If they had done a regular IPO, might they just have had trouble selling all the offered shares at the set price? (These are all honest questions, just to be sure. I have no preconceived idea what the answers might be! I'm not clued up enough to argue with rhetorical questions on this stuff.)
- bduerst 11y agoNot sure. I know Google's IPO was during a time that wasn't favorable, but it also had a strong B2C brand, which would have biased investors and made the auction more favorable.
- evanpw 11y agoPart of the service the banks are supposed to provide is to help with timing the IPO. (I have no idea how good they are at doing that, though).