RE:RE:Now we know why the stock was dropping yesterdayMore meaningful is the fact that the IPO was priced at only ~$0.50 USD below yesterdays 13 day SMA. In my experience that is a low discount......... ...but what do I know? cheers
MeAndMyTwoCents wrote: Why will it be "a very red day"? The issue was priced at only about 12% below yesterday's closing price in the US and it's a very small deal. $50M plus overallotment is barely enough if one big growth fund wants to take a "dabble" in the position. I believe this will be oversubscribed and the share price will not suffer much, or very long, and the company will now have a substantial war chest full of cash. Issues are almost always priced below the market as an incentive to get them purchased, but that by no means implies that is the true value of the company.