secondary IPO question

[uncle_vito]

Some secondary IPOs are issued with a discount and others are not. Anybody
know why?

As an example, secondary IPOs below priced on Thursday night based on the
closing price that day. The IPOs began trading the next day.

SCG closed on Thursday at $27.5 and the sec IPO pricing was $27.5.

FSLR closed on Thursday at $103 and the IPO pricing was $95. Why was there
a discount on the FSLR shares?

Anyone know?

Thanks

Vito

[Blash]

uncle_vitoy wrote on 8/11/07 9:14 AM:

First, there is NO such thing as a "secondary IPO".......IPO means
INITIAL Public Offering.......
Second, there may be a sale of a large block of stock by the company
and/or selling stockholders and it is priced at the best negotiated price
that the entire block can be done.......

[704set]

As Blash noted, this was a secondary .... not an IPO. The price, like
anything in the market, is determined by supply and demand. Obviously the
demand was not that great. In fact, they had to cut the supply ... offering
6.5 million shares instead of the original 9.65 million shares. They found
enough demand (buyers) at a big discount.

704set

"uncle_vito" <uncle_v...@yahoo.com> wrote in message
news:13brdhv...@corp.supernews.com...

[uncle_vito]

Thanks all for your reply. Yes, it was just a PO and it was 4 Mil shares
offered by the company and 2.5 M from a stockholder named Walton (not Sam).
Guess they priced it such that they thought that all would be sold.

What bugs me is that the current price of the stock was $103 and the
'dilution' screwed all current shareholders. Seems the stock price dropped
immediately to $95 bucks which made all the shorts happy, even though there
was a 1 month hold on selling the shares except for Goldman Sachs. GS
decided to not sell any of their shares voluntarily. I guess I should have
picked up some of the $95 dollar shares. I expect the shares will zoom back
to $103 and above next week.

These were FSLR shares.

Vito

"Blash" <bla...@comcast.net> wrote in message
news:C2E33F5C.77219%bla...@comcast.net...