When it comes to pricing shares for an initial public offering, the author of today’s article notes that they need to be priced “high enough that initial investors can get out at a reasonable profit. And so that the company can raise capital from the stock sales to fund its needs for a while. But they also need to be priced low enough to move higher, to create market confidence. If they fall, it’s considered a ‘failed IPO’.” By this measure, then, it would appear that the recent Lyft IPO was a failed IPO – and that could mean that now is a good time to buy. For more, CLICK HERE.
Hitching A Ride On The “Failed” Lyft IPO
- by Bob Mitchell