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First I’ve heard of this - do you have a source handy?
by leetrout 6y ago
First I’ve heard of this - do you have a source handy?
- deadmutex 6y agoI think OP is alluding to the fact there was a big pop on IPO day (which indicates that the IPO was mispriced). Though that is not a "fee", but money left on the table for the company.
- agency 6y agoAnd the pop in Airbnb's case was pretty enormous. They priced at $68 and closed on the first day at $144.71
- asdfasgasdgasdg 6y agoI continue to be flabbergasted any time these companies don't run an auction. Ideally N auctions, spread out through the day.
- renewiltord 6y agoGoogle did. The banks liked to release articles saying it was a disaster but they were pricing it lower than that so overall Google came out ahead.
- chrisked 6y agoHe’s referring to Goldman most likely deliberately underpricing the stock. During the IPO the investment bank gives access to certain folks: Their clients. They doubled their money almost risk free since they know demand.
- nescioquid 6y agoRight. That's why I always thought buying IPOs is a bit of a mug's game.
- alisonkisk 6y agoBuying anything volatile is a mug's game. An IPO is infinitely volatile since it has no history.
- leetrout 6y agoI didn’t know that was a thing.
- xyzzyz 6y ago> They doubled their money almost risk free since they know demand. They only did double their money if they can sell without pushing the price down. That's not easy to do for institutional investors.
- s17n 6y agoIn fact, institutional investors often make informal agreements to not flip the shares in exchange for their allocations.