4 ms·
Pricing is hard, but yes, I think they did price this one a little too low. That said, the goal is for shares to have a nice upward pop when they hit the open
by cujic9 9y ago
Pricing is hard, but yes, I think they did price this one a little too low.
That said, the goal is for shares to have a nice upward pop when they hit the open market.
This helps encourage a broader based of shareholders, protecting against the case where a big shareholder decides to dump all of their shares.
This also helps in the case where the company comes out with bad news in the near future. Shareholders who make money are less likely to sue.
- heisenbit 9y agoThe ones who made money are the ones who sold and who are ex-shareholders.
- cujic9 9y agoAnd the underwriters, and the early shareholders who grabbed a little chunk of that 30% on the way up.
- davidw 9y ago> Pricing is hard, but yes, I think they did price this one a little too low. Auctions can work pretty well for pricing things.
- Pottsy 9y agoSorry, why exactly do you think 7.5x next year sales is too low?
- cujic9 9y agoBecause the market would have supported a higher price.