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This means the company absolutely positively mispriced the offering. The company could have successfully raised nearly 30% more money.
by notyourday 9y ago
This means the company absolutely positively mispriced the offering. The company could have successfully raised nearly 30% more money.
- kelnos 9y agoThat's not how it works. When you're shopping around your IPO before going public, you need to get commitments from institutional investors to buy your stock at IPO at a particular price. Just because people will start buying at +30% shortly after IPO does not mean you can get investors to commit to a 30% higher IPO price beforehand.
- notyourday 9y agoThat's exactly how it works. What you are describing is the standard IB B.S. speech. It has been debunked multiple times, starting from the time of DLJ.
- kelnos 9y agoHuh? I'm not saying it's reasonable/good or doesn't involve cronyism and "discounts" for "favored" investors, but what I described is actually how it works.