With an IPO, they can set any price they want - bu
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Posted On: 01/17/2019 11:55:59 AM
With an IPO, they can set any price they want - but they have to get buyers for that price. So Joe might be able to set the price at $5, but if nobody buys at that price, the price will drop until there is a buyer. If there are more bids for stock than shares available when they IPO, the IPO price might actually go up. Just demand and supply dynamics.
This is why the NIO spinout is so interesting to me - historically, AE37 has had almost 0 value regarding GNBT pps. But when you separate it, now it suddenly has a value? I know the Merck test brings some eyes to it, but the first PII test should have done the same, and yet prior to all this NuGen stuff, GNBT was trading at $.15 post 1000:1 reverse. So it will be interesting to see what the market values it at...wish Merck would make an offer on a purchase of rights or something, because that would at least establish a floor. Beyond that, gonna be a guess at what the shares actually trade at once they are available.
This is why the NIO spinout is so interesting to me - historically, AE37 has had almost 0 value regarding GNBT pps. But when you separate it, now it suddenly has a value? I know the Merck test brings some eyes to it, but the first PII test should have done the same, and yet prior to all this NuGen stuff, GNBT was trading at $.15 post 1000:1 reverse. So it will be interesting to see what the market values it at...wish Merck would make an offer on a purchase of rights or something, because that would at least establish a floor. Beyond that, gonna be a guess at what the shares actually trade at once they are available.
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