Allaire Message Board - Msg: 7395759

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Technology Stocks : Allaire

ALLR 1.150

-1.7%

2:15 PM EST

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To: TechMkt who wrote (40)	1/21/1999 4:48:00 AM
From: Simon Withers	of 612

>Anyone know the reasoning behind this? It just comes down to supply and demand. The underwriting syndicate will have a very good picture by this stage of how much demand there is for the stock, and will pitch the price accordingly, to try to balance the interests of both Allaire and their investing clients. They revise the pricing range beforehand to keep their clients expectations in the right ballpark, and also to give them a chance to revise their bids for stock accordingly. E.g. an institution may have said they would take 200,000 shares if it priced at 15, 100,000 at 16 or none if it was at 17 - the top end of the original filing range. Now that the range has been revised in the light of high demand for the stock (or possibly market conditions), they may well want to revise their own bids upwards or they won't be receiving any stock. Simon

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