Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : InterVU (ITVU) -- Ignore unavailable to you. Want to Upgrade?

To: coachbobknight who wrote (924)	4/7/1999 8:57:00 PM
From: Tom Hua	Respond to of 1015

Coach, I also think that the tertiary will be priced in the 40s. I wonder if anyone here knows or remembers the events unfolded for ITVU's secondary last year. In its initial s-1 filing, PaineWebber (PW) was the lead underwriter with Josepthal and Cruttenden Roth acting as co-managers. The proposed maximum offering price was $17 1/2 (2.3 MM shares) while ITVU was trading between 19-20 in the open market. PW couldn't find takers at the proposed $17 1/2 price and recommended a lower price. After much negotiation, there was no agreement. PW pulled out of the deal. ITVU paid PW $25,000 for the service. It was then up to Josepthal and Cruttenden Roth (both were IPO underwriters) to handle the deal. Of course these two smaller outfits couldn't do any better. There was just no demand for the stock. Few weeks later, price was reduced to $14 1/2, and number of shares offered cut from 2.3 to 1.4 MM. Another week went by and another S-1 amendment. This time the proposed offering price was reduced to $13 1/4. At all times prior to the secondary, ITVU traded above the proposed maximum offering prices. Regards, Tom