December 17, 2003
Orbitz Raises $316 Million in IPO
A company with Lisp software at its heart raised $316 million today.
Posted by jjwiseman at December 17, 2003 06:12 PM
NEW YORK (Reuters) - Online travel company Orbitz Inc. raised a higher-than-expected $316.7 million on Tuesday in one of the most anticipated initial public offerings of the year.
Well, they raised the initial price of the stock from what it was originally. A few days after the IPO, the stock went down. This is not unusual for an IPO.
If the stock had IPO'ed at $20 and got driven up to $70, say, after a few days, it means the investment banker had grossly underpriced the security and lost the IPO company (the people _raising_ the capital) money.
During the mania this happened regularly. As the sheeple bid a stock up, investment banking insiders and their buddies and IPO candidates' insiders and their buddies who had gotten in at or near the IPO price profit (or profiteered) from the crazy mark-up. The technical term was "flipping", IIRC.