Quote:
Originally Posted by Damien
Didn't the Government give up most of it's share in the initial offering? EDIT: No, turns out they didn't. So hopefully the price isn't a fluke and is the worth of the business.
---------- Post added at 23:45 ---------- Previous post was at 23:41 ----------
The share price reflects what the market thinks the company is worth.
When you're doing an IPO you don't want to price it too high so that the offering is undersubscribed but you also don't want to leave money on the table. The share price changing too much from it's initial pricing is not what you want, at least not if you're the one selling those shares.
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70% of the shares weren't available to plebs like us, they we're reserved for the high rollers like pension funds and sovereign wealth funds. The government kept 37.7 percent in tax payer hands iirc