3 ms·
I don’t really get what makes this an amazing IPO. Afaict they left 33% of the money on the table. How is that a good thing for the company or the shareholders?
by shhehebehdh 7y ago
I don’t really get what makes this an amazing IPO. Afaict they left 33% of the money on the table. How is that a good thing for the company or the shareholders?
- dalbasal 7y agoOne way or another, that shouldn't be that big a deal. The company doesn't necessarily raise that much on IPO day. The importance of raising that sum at a 20% higher/lower valuation probably isn't the biggest thing at stake. The IPO isn't primarily fund raising, especially for this current crop of more mature unicorns. It's primarily liquidity generating.
- sb8244 7y agoIt would be good for people who bought in (higher margin), good for people selling in 6 months (employees), and bad for the company (money on the table).
- breerly 7y agoThis sounds right.
- dcaisen 7y agoDon't forget about the underwriters (investment bankers) who will be paid a hefty sum by Pagerduty (despite underpricing the IPO) and who also just got a ton of goodwill from their top trading clients who got those IPO allocations
- analyst74 7y agoI don't see how this is better for employees, assuming there is a stable price X, whether you price IPO at X * 0.8 or X * 1.2, by the time 6 months is passed and employees are able to sell, it probably have already converged to X.