6 ms·

> if it closes below $45 it will be the first time since 2008 that the happened for a major IPO Sorry, first time that what happened?

by aqme28 7y ago

gizmo385 7y ago
This reads almost like a sports statistic with how arbitrary it feels.
- zd123 7y ago
  It’s not arbitrary at all. IPOs are structured by investments banks to ‘pop’ on the first day. If the closing price is below the IPO that is generally regarded as a failure and may imply over-valuation.
  - wesammikhail 7y ago
    > If the closing price is below the IPO that is generally regarded as a failure and may imply over-valuation. Generally regarded by whom* exactly? The world is full of examples of IPOs that did badly on opening day/week but soared like mad afterwards. These generalizations and pretense of knowledge helps no one; especially considering that "over-valued" is not something that can be determined in a short period of time as value is relative to the context in which the asset presents itself. * as a non-native English speaker, did I use whom correctly or should it be "who"? Edit: thank you for the reply mr scarejunba!
    - scarejunba 7y ago
      > as a non-native English speaker, did I use whom correctly or should it be "who"? It is correct. Object of the sentence. Common mnemonic: whom answered by him/them, who answered by he/they
    - zd123 7y ago
      It’s considered an over-valuation by investors and anyone who has ever worked in a sellside investment bank or on IPOs. The goal of the investment bank is to work with the company to come up with a sensible valuation that will clear and pop on the IPO date. The bank has to take into account the market conditions and investor appetite when structuring the trade and setting the price. It is also why you hear of company’s pulling out of IPOs when market conditions are not favourable. I don’t follow your point exactly, if the value of the asset is relative to the context it presents itself, and the price you set for the IPO is not consistent with the said context, then you are incorrectly valuing the asset. The asset can be under or overvalued. For the record I have actually worked on IPOs at an investment bank structuring these kind of trades, so it’s not a pretense of knowledge on my part.
    - Gibbon1 7y ago
      > Generally regarded by whom* exactly? It reflects badly on the investment bank. But doesn't mean anything about the companies fundamentals or where their stock is going to be in a year. Friend of mine bitched that when his company went IPO the bank priced it low and the result was the bank made a fortune and the companies war chest was smaller than it would have been with a higher initial price. You used whom correctly, but an English speaker wouldn't notice if you used who either.
  - francisofascii 7y ago
    Sounds like when a major college football team schedules a cupcake team for its home opener, and then loses.
    - Gibbon1 7y ago
      During the lock up period, you may feel a slight sting. That's pride fucking with you. Fuck pride. Pride only hurts, it never helps.
AimForTheBushes 7y ago
That the underlying stock price closes below the IPO price.
chollida1 7y ago
edited the comment, $45 was the IPO price, meant it will be the fist time since 2008 that a major IPO closed below its IPO price on the first day of trading.
- wesammikhail 7y ago
  curious: how do you define major here considering that it is the qualification upon which the entire statement stands?
  - matt-attack 7y ago
    Successful IPOs are successful. A tautology.
    - samstave 7y ago
      Uber is going to rest at $200, i believe
- AznHisoka 7y ago
  I think Spotify also fell below its IPO opening price as well at the end of the day.
  - matthewowen 7y ago
    Spotify didn't IPO: they did a direct listing.
    - prklmn 7y ago
      It was still an IPO, just an untraditional one.
      - hn_throwaway_99 7y ago
        But to that point there was no "IPO price", i.e. the price paid by institutional clients before the first day of public trading, so there was nothing to fall below (there was a "reference price", but that's just more like the MSRP given by the stock exchange, not what anyone actually paid).
spelunker 7y ago
The first time a listing closes below it's IPO on the first day I believe.
konschubert 7y ago
That an IPO stock closes below its IPO price on opening day

> if it closes below $45 it will be the first time since 2008 that the happened for a major IPO Sorry, first time that what happened?

by aqme28 7y ago

> if it closes below $45 it will be the first time since 2008 that the happened for a major IPO Sorry, first time that what happened?

gizmo385 7y ago

This reads almost like a sports statistic with how arbitrary it feels.

zd123 7y ago
It’s not arbitrary at all. IPOs are structured by investments banks to ‘pop’ on the first day. If the closing price is below the IPO that is generally regarded as a failure and may imply over-valuation.
- wesammikhail 7y ago
  > If the closing price is below the IPO that is generally regarded as a failure and may imply over-valuation. Generally regarded by whom* exactly? The world is full of examples of IPOs that did badly on opening day/week but soared like mad afterwards. These generalizations and pretense of knowledge helps no one; especially considering that "over-valued" is not something that can be determined in a short period of time as value is relative to the context in which the asset presents itself. * as a non-native English speaker, did I use whom correctly or should it be "who"? Edit: thank you for the reply mr scarejunba!
  - scarejunba 7y ago
    > as a non-native English speaker, did I use whom correctly or should it be "who"? It is correct. Object of the sentence. Common mnemonic: whom answered by him/them, who answered by he/they
  - zd123 7y ago
    It’s considered an over-valuation by investors and anyone who has ever worked in a sellside investment bank or on IPOs. The goal of the investment bank is to work with the company to come up with a sensible valuation that will clear and pop on the IPO date. The bank has to take into account the market conditions and investor appetite when structuring the trade and setting the price. It is also why you hear of company’s pulling out of IPOs when market conditions are not favourable. I don’t follow your point exactly, if the value of the asset is relative to the context it presents itself, and the price you set for the IPO is not consistent with the said context, then you are incorrectly valuing the asset. The asset can be under or overvalued. For the record I have actually worked on IPOs at an investment bank structuring these kind of trades, so it’s not a pretense of knowledge on my part.
  - Gibbon1 7y ago
    > Generally regarded by whom* exactly? It reflects badly on the investment bank. But doesn't mean anything about the companies fundamentals or where their stock is going to be in a year. Friend of mine bitched that when his company went IPO the bank priced it low and the result was the bank made a fortune and the companies war chest was smaller than it would have been with a higher initial price. You used whom correctly, but an English speaker wouldn't notice if you used who either.
- francisofascii 7y ago
  Sounds like when a major college football team schedules a cupcake team for its home opener, and then loses.
  - Gibbon1 7y ago
    During the lock up period, you may feel a slight sting. That's pride fucking with you. Fuck pride. Pride only hurts, it never helps.

AimForTheBushes 7y ago

That the underlying stock price closes below the IPO price.

chollida1 7y ago

edited the comment, $45 was the IPO price, meant it will be the fist time since 2008 that a major IPO closed below its IPO price on the first day of trading.

wesammikhail 7y ago
curious: how do you define major here considering that it is the qualification upon which the entire statement stands?
- matt-attack 7y ago
  Successful IPOs are successful. A tautology.
  - samstave 7y ago
    Uber is going to rest at $200, i believe
AznHisoka 7y ago
I think Spotify also fell below its IPO opening price as well at the end of the day.
- matthewowen 7y ago
  Spotify didn't IPO: they did a direct listing.
  - prklmn 7y ago
    It was still an IPO, just an untraditional one.
    - hn_throwaway_99 7y ago
      But to that point there was no "IPO price", i.e. the price paid by institutional clients before the first day of public trading, so there was nothing to fall below (there was a "reference price", but that's just more like the MSRP given by the stock exchange, not what anyone actually paid).

spelunker 7y ago

The first time a listing closes below it's IPO on the first day I believe.

konschubert 7y ago

That an IPO stock closes below its IPO price on opening day