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It seemed to work just fine for Google. What evidence do you have that it doesn't work well?
by nordsieck 9y ago
It seemed to work just fine for Google. What evidence do you have that it doesn't work well?
- beejiu 9y agoGoogle's IPO auction famously just scraped the low-end of its estimate (after the range was revised down). It "popped" 18% on its first day of trading which - at very best - shows that dutch auction is no better than underwriting. " The offer price of $85 was well below initial expectations" (https://www.vcexperts.com/buzz_articles/252 https://www.vcexperts.com/buzz_articles/252)
- dlubarov 9y agoAccording to https://www.iposcoop.com/the-ipo-buzz-a-dirty-dutch-auction/ https://www.iposcoop.com/the-ipo-buzz-a-dirty-dutch-auction/ "the mean average of all 21 [auction IPO] opening-day gain[s] was 1.25 percent". So it seems like Google was an anomaly, but Dutch IPOs in general are not leaving much money on the table compared to traditional IPOs.