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Google IPO
- Thread starter rowenwood
- Start date
Quote from rowenwood:
What discount broker offers the cheapest and most efficient services for purchasing, first round, at an IPO?
What is your opinion of the Google IPO?
unless you have a multi-million dollar acct w/one of the underwriters, you're not going get in on the action until the rest of the public can, you still might be able to get make a quick buck or so, but as soon as it's available to the general public all of those people with the million dollar accounts who actually got it at the offer price are going to sell.
Hey, I have some general IPO questions that hopefully someone can answer for me. Lets assume that there is a 10 million share IPO at $20 / share.
-If I place a market on open order the day of the IPO, do I get a fill at $20?
-Who am I buying the initial shares from? the underwriters?
-Does the company going public get $200M from the underwriters before fees?
-If I can not get the $20 price at the open of the first day, who did get the $20 price?
Thanks!
-If I place a market on open order the day of the IPO, do I get a fill at $20?
-Who am I buying the initial shares from? the underwriters?
-Does the company going public get $200M from the underwriters before fees?
-If I can not get the $20 price at the open of the first day, who did get the $20 price?
Thanks!
Quote from adonos:
Hey, I have some general IPO questions that hopefully someone can answer for me. Lets assume that there is a 10 million share IPO at $20 / share.
-If I place a market on open order the day of the IPO, do I get a fill at $20?
-Who am I buying the initial shares from? the underwriters?
-Does the company going public get $200M from the underwriters before fees?
-If I can not get the $20 price at the open of the first day, who did get the $20 price?
Thanks!
1. no, usually if it's a hot ipo the price will be higher.
2. no the company doesn't get 200mil, the underwriter usually pays the co. for a certain price for the amount of the 10mill shares that will be available to the public-firm commitment offering, the co. doen't have to offer all 10mil shares to the public.
3. as far as who you are buying it from, usually the big time acct holders who got into the ipo at the initial offering price, or market maker/specialist.
4. usually the big time account holders for the underwriters get first crack at the offering price, other instiutions, basically big time people, not joe average investor.
Quote from adonos:
Hey, I have some general IPO questions that hopefully someone can answer for me. Lets assume that there is a 10 million share IPO at $20 / share.
-If I place a market on open order the day of the IPO, do I get a fill at $20?
no you get whatever the first print is. it could be 20 or it could be 100.
-Who am I buying the initial shares from? the underwriters?
underwriters, owners,venture capital owners,friends and family, and a few from the public lucky enough to get pre ipo shares.
-Does the company going public get $200M from the underwriters before fees? after fees.
-If I can not get the $20 price at the open of the first day, who did get the $20 price?
Thanks!
So, does the company going public actually get less than their new market cap?
So the underwriters for a hot IPO like google could only offer 1/10 of the shares up for sale and drive up price because of low supply before selling off some more?
This sounds like a great deal all around for the underwriters and not so hot for IPO investors and the company going public.
So the underwriters for a hot IPO like google could only offer 1/10 of the shares up for sale and drive up price because of low supply before selling off some more?
This sounds like a great deal all around for the underwriters and not so hot for IPO investors and the company going public.
Quote from adonos:
So, does the company going public actually get less than their new market cap? yes there are lots of fees.
So the underwriters for a hot IPO like google could only offer 1/10 of the shares up for sale and drive up price because of low supply before selling off some more?
yes but they have to be careful to sell enough to last them until they get profitable because they may not be able to sell more stock if times get tough and they run the risk of going bk. (google is already profitable just talking in general)
This sounds like a great deal all around for the underwriters and not so hot for IPO investors and the company going public.
exactly.
Quote from adonos:
So, does the company going public actually get less than their new market cap?
So the underwriters for a hot IPO like google could only offer 1/10 of the shares up for sale and drive up price because of low supply before selling off some more?
This sounds like a great deal all around for the underwriters and not so hot for IPO investors and the company going public.
intially yes, lets say ABC co. wants to go public, the underwriter is merill(usually theres a couple, but we'll use one for this) the co., their attorneys, cfo etc. and the underwriters, attorneys etc. decide on an offering price and share amount. lets say 10 mil shares at 10 bux. they then decide on the public float(shares available to the public out of the 10mil-the execs of the co. want to keep something for themselves) they decide 6mill share out the 10 mill will be avail. to the pub. the u/w will buy the 6 mill at a discount something like 9.25 a share. they to offer all of the 6 mill shares to their big account holders, funds, etc. at 10 bux, it then hits the market if it's hot, all of the buying from everyone will drive the price up it no one really want it, the price may go down, the best time to buy an ipo is usually 2 or 3 months after it's ipo date, a lot of times they pull back after all of the hype is over.
Should ASKJ go down with a Google IPO since now ASKJ provides the only supply of pure-play search engine exposure, but with Google some ASKJ holders will diversify out of ASKJ and into Google? Or will ASKJ trading volume increase because now pair trading is more viable?
I'd be interested in hearing from anyone who has observed this type of phenomenon with other firms or other IPOs.
I'd be interested in hearing from anyone who has observed this type of phenomenon with other firms or other IPOs.