IPO lockups

Doug Henwood dhenwood at panix.com
Wed Mar 22 20:23:13 PST 2000


Jordan Hayes wrote:


>Look at it this way: a VC buys at $1, sells at at $15 IPO; institution
>buys 1/3 of their long-term position in the IPO for $15, other two
>thirds on the way to $24. Stock goes to $28 in two years. Both
>groups are heroes to their clients.

From what location are you pulling these figures? The studies I've read show that IPOs in general underperform the market - and the later in the market cycle, the worse the underperformance. You know to the contrary?

Doug



More information about the lbo-talk mailing list