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fib_1618

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Reply with quote  #1 
                               
Blackstone listing to begin NYSE debut on Friday

The Wall Street Journal

The initial public offering of stock in private-equity giant Blackstone Group is expected to begin trading on Friday on the New York Stock Exchange.

Morgan Stanley, the underwriter of the highly-anticipated listing, has not publicly confirmed the debut day. But the deal is on Morgan Stanley's online calendar of expected flotations, listed with a pricing date of Thursday night.

Blackstone intends to raise as much as $4.7bn (€3.5bn), making it one of the largest offerings in the US in years. The trading symbol is BX on the Big Board. The company plans to sell 133.33 million common units to the public at a price range of $29 to $31 a unit.

Los Angeles Times

Blackstone’s move to bring forward the listing date suggests strong investor demand for the stock despite newly proposed legislation that would significantly increase taxes on the private equity goliath.

The accelerated timetable, however, also indicates that Blackstone or its investment bankers are anxious to get the deal done quickly before market conditions change because of the tax issue or other problems, experts said.

Sal Morreale, an institutional salesman who tracks listings at Cantor Fitzgerald, said the deal appeared to be oversubscribed.

                       
                                       
                               
                       

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Reply with quote  #2 
"suggests strong investor demand"

hehehehehehehe  

Who are those jokers trying to fool?
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bnick

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Reply with quote  #3 

Quote:
Originally Posted by greenie
"suggests strong investor demand"

hehehehehehehe  

Who are those jokers trying to fool?


Are you man enough to short this thing when it goes public?  I wouldn't short BX with your money.
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Reply with quote  #4 
Of course not. The game is tilted against the shorts at the IPO.

I am just commenting that they moved the IPO, because they are sensing liquidity dying out fast in the market, not oversubscription.
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bnick

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Reply with quote  #5 

Quote:
Originally Posted by greenie
The game is tilted against the shorts at the IPO.


This statement is both incorrect and down-right silly.
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Reply with quote  #6 
I do not understand what is incorrect or silly here.

When a stock comes to IPO, investment banks already know the demand-supply at the institutional level, and decide the IPO price based on that demand. Also, we are looking at a high-profile company here, and not a third rate unknown firm. So, the IPO price has high chance of  holding on the IPO day. For shorts, the risk is unlimited (as always), but the reward is truncated by the IPO price.

Now can you explain, what makes you so hostile about a simple statement about my perception of risk-reward.


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bnick

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Reply with quote  #7 
Quote:
Originally Posted by greenie


Now can you explain, what makes you so hostile about a simple statement about my perception of risk-reward.




1) Not all IPOs are successful.  That is, many stocks' peak price is the day of the IPO.

2) There is no real way to discern which IPOs will be successful prior to the day they go public.
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Reply with quote  #8 
Congratulations to you bnick, if you went short BX right after IPO !! I was too risk-averse, but what you said turned out to be true in case of this POS.
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bnick

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Reply with quote  #9 
Quote:
Originally Posted by greenie
Congratulations to you bnick, if you went short BX right after IPO !! I was too risk-averse, but what you said turned out to be true in case of this POS.


As a (somewhat) famous football coach once said, "Hindsight is 50-50." 
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