After jumping to $25 when it hit the market, Pandora’s stock is now fading back to $18.A bummer for investors who bought at $25 this morning, but if the stock stays in this range it means the IPO was priced almost perfectly.
When bankers go out and sell a investment, its clients expect to get a ~15% discount or so on the stock, which is what investors are getting on Pandora right now.
This is a welcome change of pace for new IPOs. When LinkedIn IPO’d, the stock popped 90% screwing the company out of $200 million in extra funds. Prior to that ZipCar’s stock popped 60% on its opening day screwing it out of $50 million.
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