Same thing happened during the twitter IPO. I should really start looking at this when any investment related news is big enough to enter mainstream media.
Come on now, at least grant the market a little time will yah? You should check out the Santander IPO - looks a bit fishy to me and is being projected at a range of 22-24
^ What’s fishy about it?
To preface, i have no affiliation nor am i an investor, i just reviewed it on behalf of a buddy. I have little exp assessing IPOs so responses from experienced investors are welcomed.
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The proceeds are not being given to the company but instead, existing shareholders.
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The reorg of the company (shown below)
In July 2013, Santander Consumer USA Inc., an Illinois corporation (“SCUSA Illinois”), formed Santander Consumer USA Holdings Inc., a Delaware corporation (“SCUSA Delaware”), and SCUSA Merger Sub Inc., an Illinois corporation and a wholly owned subsidiary of SCUSA Delaware (“SCUSA Merger Sub”). SCUSA Delaware is the registrant in this offering. Both SCUSA Delaware and SCUSA Merger Sub were formed solely for the purpose of effecting this offering. Neither SCUSA Delaware nor SCUSA Merger Sub has engaged in any business or other activities except in connection with their respective formations and effecting this offering, and, except for SCUSA Delaware holding the stock of SCUSA Merger Sub, neither holds any assets and, except for SCUSA Merger Sub being a wholly owned subsidiary of SCUSA Delaware, neither has any subsidiaries. Prior to the closing of this offering, SCUSA Merger Sub will merge with and into SCUSA Illinois, with SCUSA Illinois continuing as the surviving corporation and a wholly owned subsidiary of SCUSA Delaware, the registrant. In the merger, all of the outstanding shares of common stock of SCUSA Illinois will be converted into shares of SCUSA Delaware common stock on a 2.6665 for 1.00 basis.
- The dilution:
DILUTION If you invest in our common stock in this offering, your ownership interest will be immediately diluted to the extent of the difference between the initial public offering price per share and the net tangible book value per share of our common stock after this offering. Dilution results from the fact that the initial public offering price per share of common stock is substantially in excess of the net tangible book value per share of our common stock attributable to existing stockholders for our presently outstanding shares of common stock. As of September 30, 2013, net tangible book value attributable to our stockholders was $2,440,585,000, or $7.05 per share of common stock based on 346,173,061 shares of common stock issued and outstanding after giving effect to the Reorganization. Net tangible book value per share equals total consolidated tangible assets minus total consolidated liabilities divided by the number of outstanding shares of common stock. This offering will result in an immediate dilution in the net tangible book value of $15.95 per share to the investors who purchase our common stock in this offering. The following table illustrates the per share dilution after giving pro forma effect to this offering: Initial public offering price per share … $23.00 Net tangible book value per share as of September 30, 2013 … $7.05 Dilution per share to new investors … $15.95
It just looks pretty illiquid. Someone just decided to buy some at 1:39, and then it looks like they changed their mind 20 minutes later.
And that’s the news article too… ha ha… the company was mistaken for the one google just announced acquiring.
In that case, markets actually were fairly efficient, because it was mispriced, due to someone’s mistake, and then corrected 20 minutes later.
Yah, if you look at the highest volume and multiply by highest price, it’s like $20k?