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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.
by 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 agocurious: how do you define major here considering that it is the qualification upon which the entire statement stands?
- matt-attack 7y agoSuccessful IPOs are successful. A tautology.
- samstave 7y agoUber is going to rest at $200, i believe
- AznHisoka 7y agoI think Spotify also fell below its IPO opening price as well at the end of the day.
- matthewowen 7y agoSpotify didn't IPO: they did a direct listing.
- prklmn 7y agoIt was still an IPO, just an untraditional one.
- hn_throwaway_99 7y agoBut 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).
- kenneth 7y agoIt was not an IPO as there was no public offering. Instead, the company filled an S-1 and was listed on an exchange allowing for secondary trading.
- Retric 7y agoUber is currently well below it’s IPO price. Historically, that’s not uncommon.
- hn_throwaway_99 7y ago> Historically, that’s not uncommon. Really? I was under the impression that closing below your IPO price is quite rare indeed. Do you have other data? Edit: actually, just saw a NYTimes article with info that it is indeed rare: Since 2000, only 18 companies valued at more than $1 billion and listing on American exchanges have opened below their I.P.O. price. On average, tech stocks have jumped — or “popped,” in Wall Street parlance — 21 percent on their first day of trading over the past 24 years, according to Dealogic.
- Retric 7y agoI would call 18 common, relative to the number of recent IPO’s over 1 Billion dollars. It’s definitely not the majority, but it’s common enough to make leverage extremely risky.
- hn_throwaway_99 7y agoYou have an odd definition of "common". That's 18 over a total of nearly 20 years. The billion threshold is for total company valuation, which at least recently is most companies listed, not amount raised.
- Retric 7y agoAs of today, 15 of the last 50 IPO’s where down, with one exactly breaking even. I think most people would call 30% common. 2008 has 31 Total IPO’s, restrict that to 1+ billion and you are not talking about a huge list. Restrict that to an unusual few years and it’s easy for an abnormal but meaningless pattern to show up. But, we have no need to make such assumptions. PS: Facebook is something of an oddity, opening day has technical issues which ended up inflating the price.
- 7y ago