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What if anything might prevent Amazon or some other mega-cap from getting a controlling interest at the IPO? Are mega-caps likely to be dominant buyers from th
by choppaface 3y ago
What if anything might prevent Amazon or some other mega-cap from getting a controlling interest at the IPO?
Are mega-caps likely to be dominant buyers from the underwriters? Or will retail / pension funds be just as big.
- impulser_ 3y agoNothing, once it traded on the public market anyone with the capital can gain control. The thing is it most likely not going to happen, because they would almost certainly get a better deal buying majority interest before any IPO.
- shapefrog 3y ago> Are mega-caps likely to be dominant buyers from the underwriters? Underwriters will typically take the highest price there will be no preference for the "mega-caps". Underwriters float stocks every day, they need to keep happy their core investors who make every other deal happen - retail / pension funds. It would probably even be preferable, if there was demand from Amazon or some other mega-cap to give them 0 in the float and then they can bid up the price in the open market and make everyone who is allocated in the IPO richer. ~20% of the shares will be in the IPO, even if someone buys every share publicly available in the IPO they wont have a controlling interest.