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A comment on Twilio opens trading at $23.99 per share. Parent comment

Re:Twilio opens trading at $23.99 per share by jldugger on Thursday June 23, 2016 @01:24PM (#11962770)
A lot of your hypothetical hinges on GS / MS buying at 15 and holding at prices below 24. Which is a lot like saying they actually value it at 24, but were somehow allocated shares at a bid lower than that. IMO, Google did it right with the Vickrey / second price auction, and apparently this has been formalized OpenIPO: into https://en.wikipedia.org/wiki/OpenIPO

If we assume that GS and MS have a reserve price of 24, as evidenced by the market open, then their strategic 15 and 16 bids do represent money left on the table.

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Re:Twilio opens trading at $23.99 per share by ProfChronos on Thursday June 23, 2016 @07:02PM (#11964934)
Fact is Goldman Sachs - and maybe other banks - were allocated shares with a priviledged price during the FB's IPO as they were working on the IPO while buying stocks for their own clients. I know this was a special IPO, but my guess is that it is likely to happen for others
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Re:Twilio opens trading at $23.99 per share by jldugger on Friday June 24, 2016 @01:09AM (#11966738)
The special IPO is the one where that _doesn't_ happen.
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