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Stock prices aren't very useful, I prefer to look at total marketcap. They IPO'd at 15 dollars with a valuation of 1.23 billion dollars, which means they're no
by rm999 10y ago
Stock prices aren't very useful, I prefer to look at total marketcap.
They IPO'd at 15 dollars with a valuation of 1.23 billion dollars, which means they're now about 1.97 billion dollars.
https://techcrunch.com/2016/06/22/twilio-prices-its-ipo-at-15-per-share-above-its-previous-target/ https://techcrunch.com/2016/06/22/twilio-prices-its-ipo-at-1...
- jonknee 10y agoActually, for an IPO the stock price is very useful. It opened at $15 which was higher than the previously announced range of $12-14 and have shot up 70% in early trading. It's a great start for a tech IPO, hopefully this will encourage more companies to list.
- MichaelApproved 10y ago> hopefully this will encourage more companies to list hopefully this will encourage more VC's to fund. Quick edit: not saying there isn't a lot of funding already happening but there's fear that VC might dry up. Hope it doesn't happen.
- jsprogrammer 10y agoDoesn't that mean the company missed out on about half its value?
- triangleman 10y agoYep that's called money on the table.
- jonknee 10y agoNot really, they only sold a small percentage of the company in the initial offering.
- jsprogrammer 10y agoStill looks like ~$100,000,000 was missed.
- whatok 10y agoDefine missed in this context. Missed to means they had an opportunity to sell those 10mm shares @ $23.99 elsewhere. I don't think that would have been remotely possible.
- jonknee 10y agoThe conventional logic is that you don't want to try picking up nickels in front of a steamroller by pricing your IPO too high and having it sag out of the gate. You want demand for the shares and then let the market price them. If Twilio had priced their shares at $24 they almost certainly wouldn't have sold them all and it would have been a really ugly IPO that resulted in a lower total market cap. tl;dr sentiment is very important for IPOs
- tomp 10y ago> sentiment is very important for IPOs Who cares. Compare Twitter ("popping" IPO) vs. Facebook ("sagging" IPO).
- whatok 10y agoI don't see the point in comparing the two but if you want to, Twitter had much better near-term post-IPO performance than Facebook did. We all know what happened after that. It's almost as if during a period where little fundamental information is available (post-IPO), something else must be driving trading (sentiment), while when more fundamental information is available (first earnings report), fundamental information plays more of a role.
- tomp 10y agoWhy would then companies want to cater to sentiment-driven investors?
- jklein11 10y agoEh thats kinda hard to say. Looking at the quoted price of a stock is a little bit misleading without looking at the Bid and Ask volumes. Currently the bid of ~1000 shares are available at 24.97 (these number will vary second to second) That doesn't mean that all of the shares IPOed could have been sold for that price. Was there likely money left on the table? Yes. But its pretty difficult to put a dollar amount to it.
- whatok 10y agoLiterally no one in the industry looks at IPOs that way.
- knicholes 10y agoThere exists at least one in the industry who looks at IPOs this way (as manifested by the parent comment).
- whatok 10y agoThe OP's profile leads me to believe they're not in finance although I could be wrong. Change in market cap is a very awkward way to look at a recent public company because it's a very volatile measure and also is harder to mentally extrapolate other metrics from.
- tomp 10y agoIt's useful in comparison to the IPO price, which was $15. This means they left a lot of money on the table.
- whatok 10y agoOr they had to price at a larger discount to encourage a full book and enough of a pop to support the stock.
- edutechnion 10y agoSo if they sold at their true price via the Google-style reverse auction, they would have $9 * 10 million more to use for business growth. Instead lots of hedge funds and high net-worth individuals that are big clients of GS and JPM made an easy $100k this morning.
- harryh 10y agoThink about it this way: 9 * 10m = $90 million. But probably they couldn't have sold the whole 10M slug at 24. Let's guess and say they left more like $45M on the table. They are currently at a ~2B valuation. 45M / 2B = 2.25% Twilio is (in theory) a high growth tech company. Say they want to grow at 15% a year. 2.25% / 15% = .15 or about 2 months worth of growth. 2 months is certainly something, but in the grand scheme of things isn't the hugest deal in the world.
- whatok 10y agoSentiment behind tech IPOs is already negative and complicating the IPO process would only further that sentiment. Hard to imagine the bookrunners would ever agree to that.
- evanpw 10y ago> true price via the Google-style reverse auction Even with the auction, Google IPO'd at $85, and the stock opened at $100. If you think that the investment banks gave away $90M of Twilio's money to their friends, do you believe that Google did the same thing with $300M of their own money?
- 10y ago
- tim333 10y agoGoogle finance is showing price $28, cap $4.6bn at the mo.