OpenIPO - the WAY IT WORKS and where Andover.Net.Linux may be
Steps:
1. Subscription price: in trad.IPO, this is set by inv. bnkr based on demand; in OpenIPO, same thing but done via Auction. So, all the auction process is, is to set the subscription price.
2. Opening price day 1: in trad.IPO, this cud b several $ higher from demand of those wanting the stock. THE SAME THING APPLIES IN AN Open.IPO, imo.
I doubt we will see ANDN trading at a flat $18 (though wish it would, and if it does, will load up) since all Step 1. did, in effect, was get a feel for where the market lies, but there is still demand from those, institutions and individuals, who:
(a) were not previously aware of the ANDN ipo
(b) were aware, but uncertain of the process, so did not bid
(c) do not have an account allowing them to make a bid
(d) bid, but did not reconfirm their bid by the cut off time
(e) bid, but their bid was below the clearing price
(f) bid, but their price was at the clearing price, thus did not get their full desired block
(g) bid, but based on OpenIPO rules, abnormally excessive quantities cut back to more normal levels (this would apply to investment houses). They'll have to get the shares in the open mkt.
So, we may very well see ANDN open up much higher than $18 (should have been $24, but brought back to $18, which may be an opportunity to get in below 24) based on the types of demand, above, and Linux.
It will be interesting, and I doubt the mkt reaction will be flat, with Andover.Net having:
(1) 45 Million page hits/months (vs. 10 million for RHAT)
(2) providing support for ALL versions of Linux (vs current version only at RHAT); to me, in this mkt space, Andover.Net could be viewed as an outsourcing / consultant of technical support, especially since mid-size co's apparently using Linux the most, and likely don't have as many staff, etc.
etc, etc.
(Analysis by, & opinion of, QW. Any copy of this by journalists, TheStreet.com, etc. pls make due reference to source). |
