RE:Markets are looking to start in the redIt looks like a discount of 20 to 25 cents to the offering price is very much the norm in these situations. The underwriters always get a discount of four or five percent, so they make money even at these prices.They also generate huge profits on the preferreds.
mouserman wrote: It used to be quite common for the overnight offerings to cause a pullback in the commons, to below the price in the offering. I suspect today will be no different.