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you don’t raise double the money because you set the price 2x unless that was your plan. you would sell half the shares if you had a fixed goal eg $3B. you dec
by tempsy 6y ago
you don’t raise double the money because you set the price 2x unless that was your plan. you would sell half the shares if you had a fixed goal eg $3B.
you decide on how much you need and then decide the number of shares you sell at what price. it isn’t like they would’ve raised twice the money if they upped the share price.
- BoiledCabbage 6y ago> you don’t raise double the money because you set the price 2x unless that was your plan. you would sell half the shares You keep throwing out assumptions without anything backing them. They at a price and amount for sale. Absent an auction set price it's almost certain that price is inefficiently set. And you're arguing that it was efficiently set when we have tens of billions of proof it wasn't efficiently set via yesterday's stock move.
- tempsy 6y agoI said nothing about efficiency. All I am arguing is that Airbnb didn’t screw themselves. No money was taken from them. They raised the money they wanted to raise at a price they thought would be tolerable by the public markets.
- boringg 6y agoAnd handed all the gains on the first day over to the private allotment that was distributed from Wall Street banks to their top clients because no one else could buy shares. It’s total Wall Street bs.
- boringg 6y agoBill Gurney talking about the inefficiency of the ipo process on Wall Street and the inherent conflict of broker-client problem the banks carry with them. https://www.stitcher.com/show/invest-like-the-best/episode/bill-gurley-direct-listing-vs-ipo-invest-like-the-best-ep144-64116142 https://www.stitcher.com/show/invest-like-the-best/episode/b...