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by prostoalex 4598 days ago
That $40 floor exists once the market starts trading and there's external confirmation and safety in numbers.

The IPO process is more or less bankers emailing clients asking "Hey, want to buy this brand new company at $26? How about $32?" You essentially have to make a decision without information on how other buyers behave, which forces conservative behavior.

1 comments

Yea, I get it. I'm just saying it's suggestive, not conclusive.