A first-day IPO stock pop is not a sign of bad pricing
Henry Schuck · Henry Schuck turned down $40m for 70% when he was 24 · May 2, 2022 · at 32:14
ZoomInfo CEO Henry Schuck pushes back on the conventional financial criticism that a major first-day stock pop means money was left on the table.
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“Yeah, there's gonna, you're gonna read articles that say, like, oh, the pop on day one, like, that just means you, like, did a bad job of pricing your IPO. It's not really true. Like, we had the best advisors, the best people around the table on this. You don't really want an IPO that doesn't go up on the first day, creates, like, bad issues and morale issues for your team. You want a successful IPO, and ultimately, the trick is, we didn't sell a hundred percent of the company in the IPO. We sold, like, 10% of the shares in the IPO. And that's how all companies are. They don't sell the whole company in the IPO. Like, we're publicly traded, but most of the shares are privately held. So, you can do a small amount in the IPO, get a kick, get a bunch of press and excitement about it, and then downstream, you sell the rest of the shares at a higher value.”
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