Are their any companies that have recently had an initial public offering?
Edra asks:
Did the company need to go public to meet financial needs?
As an investor would you have been willing to purchase the company’s stock at the offering price? why? why not?
Did the company need to go public to meet financial needs?
As an investor would you have been willing to purchase the company’s stock at the offering price? why? why not?
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A recent one was Crocs (ticker:CROX), they make a type of shoe that is getting fashionable.
They went public to finance their expansion, so, not necessarily their immediate financial needs, but their growth plans.
I would not have purchased at the offering price. Unless the market is going straight up - like in the late 90’s - there is always a certain amount of risk in purchasing a never-before-traded stock. There are defined events in the future that will cause a stock decline - such as indsider options unlocking at 6 months, and any forecasted growth is likely built into the share price. Plus the company has been marketing itself so people probably aren’t pricing in all of the potentail problems and the competitive response from other firms, when they realize that their competition has a boatload of money.
I generally don’t have the option of buying at the offering price as those shares are allocated by banks and brokerages to large clients. The first time most epople would be able to purchase it would be on the beginning of the first day after the IPO, and if its a good looking compnay, this will probably already be higher than the offering price.
Hope this helps!