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So if I'm getting the timing right, in the week leading up to the IPO, they were just about simultaneously dropping their revenue forecasts while boosting the i

So if I'm getting the timing right, in the week leading up to the IPO, they were just about simultaneously dropping their revenue forecasts while boosting the initial offer price? This whole thing just leaves me with a bad taste in my mouth.

JumpCrisscross 14y ago
There is no singular "they". The equity research analyst, noting the S-1/A revenue forecast amendments by FB, downgraded the stock. The bankers, noting that the issue was 25 times oversubscribed in Asia alone, saw demand outstripping supply. May the bankers have gotten overzealous? Yes, probably. But we're saying this with the benefit of hindsight. Remember that Morgan Stanley walked into this deal still burning from LNKD popping 90% on its IPO - after the underwriting syndicate had already raised the price by 30% on strong demand [1]. [1] http://articles.businessinsider.com/2011-05-19/tech/30001969_1_linkedin-ipo-ipo-price-morgan-stanley http://articles.businessinsider.com/2011-05-19/tech/30001969...