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by greeneggs 4614 days ago
I am not an expert, but it seems like there should be a better IPO mechanism that sets the price just right. Why not have an auction?
1 comments

Pricing an IPO is more or less an auction. When pricing an IPO they set a range and then meet with institutional investors to sell their book (in this case 70M shares. The original price was 17-20 per share, and there was excess demand at this price, so the bankers and company, pushed the price to $26 per share.