Khan: IPOs with minimal day-one pops cause aftermarket stock crashes
Imran Khan · Imran Khan: Why the IPO Market is Not Closed & Lessons From Taking Snap & Alibaba Public | E1194 · 20VC with Harry Stebbings · Aug 26, 2024 · at 29:09
Imran Khan, former Credit Suisse Head of Global Internet Investment Banking, explains how institutional investors behave when an IPO lacks sufficient aftermarket upside.
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“If they're buying the stock at the price that it doesn't go up, only goes up 10%, they're gonna dollar-weighted average, so they're not gonna go buy the stock. So you're gonna have a supply belt that, you know demand imbalance, they will probably sell the stock, and actually your stock gonna cradle, and that's gonna create more problem for your company than, you know, leaving some money off the table.”
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