Red Hat IPO

Jordan Hayes jmhayes at j-o-r-d-a-n.com
Sun Aug 15 09:23:25 PDT 1999


From rael at zopyra.com Sun Aug 15 07:22:16 1999

Jordan and Doug can correct me if I am wrong, but the IPO

price is settled long in advance is it not?

The range is set early on, but it's subject to change right up until the moment that it goes effective. There are limits to how much it can change before you have to re-print a prospectus (and reconfirm all the orders), I think 20% in either direction.

I thought the way this worked was to decide how much cash

you want to raise in the IPO and then you basically open

up bids to investment bankers and others for purchase of

the shares.

The "art" here is contained in your use of the word "decide" ...

/jordan



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