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Companies are free to direct list without underwriters and even issue new shares in the process. I'm not sure what a "pop" (the idea that prices often go up on
by arcticbull 5y ago
Companies are free to direct list without underwriters and even issue new shares in the process.
I'm not sure what a "pop" (the idea that prices often go up on listing) has to do with anything. It generally means that the company underpriced its equity but by no means does this always happen.
Are you referring to a greenshoe? There's some misinformation there too, but it serves a purpose, too. [1]
[1] https://www.investopedia.com/articles/optioninvestor/08/greenshoe-option-ipo.asp https://www.investopedia.com/articles/optioninvestor/08/gree...
- azemetre 5y agoI think they may be referring to the "pop" some tech companies have gotten lately where they may have been purposely undervalued so when they IPO they get a nice 5-10% "boost" and good publicity when they open.
- okhobb 5y agoIPO "pop" is a bit of pejorative usually referring to the deliberate underpricing of an IPO so that the investment bankers' big clients can get a quick profit, the difference between the IPO price and the first available exchange price. In the context of this thread, an example of Wall Street sleaze.