Ferchi

And indeed it’s not entirely clear that the banks could have gotten the IPO away at $80 per share. The way that the LinkedIn IPO worked, the shares were issued at $45 to investors who were happy to hold them at that level; those investors then started selling when the first-day pop reached insane proportions. At $80 per share, however, very few of those investors would have been happy to hold on to the stock for the long term — which means they wouldn’t have put in bids in the first place. The banks might well have had serious difficulty even allocating the shares in the first place, and would have been risking a busted IPO.