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didn't Tesla just get screwed out of a whole bunch of capital? I wonder about this as well. Perhaps one of the metrics companies should use when evaluating in
by johnrob 16y ago
didn't Tesla just get screwed out of a whole bunch of capital?
I wonder about this as well. Perhaps one of the metrics companies should use when evaluating investment banks is how accurately they price IPOs.
There may be some other intangible value to having the stock jump on the first day. If so, that value had better be larger than <IPO amount> * <% increase> .
- ars 16y agoAn IPO that doesn't go up is considered a failure. So yes, it's basically required to jump at least that much on the first day. That's why the company only sells a small amount of their shares at the IPO. The rest are sold slowly over time at more accurate price levels.