On: Dropbox jumps more than 40% in trading debut

[moomin]

Were I a pre-IPO stock holder, I'd be extremely annoyed with the advisers right now.

[kgwgk → moomin]

If you were a pre-IPO stockholder you would also be a post-IPO stockholder. Selling some of your shares in the IPO at $20 and the rest in a few months at $40 may better than selling a few at the IPO at $40 and the rest in a few months at $20.

[arcanus → moomin]

Agreed. Gives some ammo to spotify avoiding a traditional route.

[maxerickson → moomin]

The cost of the pop on the float is ~$250 million ($8 on 36 million shares). There's something like 400 million shares in the company.

It's not so bad.

[zng00 → moomin]

Seems they would be happy with the bump?

[mannykannot → zng00]

If their intent is to cash out now, they are probably happy enough. Anyone with a long-term interest in the company would probably prefer for more of that valuation flow into the company's coffers, rather than to the underwriters and others with little long-term interest.

[kolbe → zng00]

What are you talking about? The "bump" off of the fake price that got made up yesterday?

Dropbox was worth $12b yesterday, just like it is today. And a few banks suckered Drew into screwing himself, his investors and his employees by selling shares at a $8b valuation.

[zethraeus → kolbe]

They mean the set of people who actually sold to institutional investors at that price, in the process of listing.