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NorthStar Realty Finance Corp. Message Board

  • newguy7001 newguy7001 Dec 13, 2013 12:09 PM Flag

    Interesting That The Underwriters Haven't Had To 'Discount' Many Shares Below The $11.65 Offer!

    In recent offerings, there has been some price 'tailing' toward the end of the pass through redistribution period. I think we see the $12 price level broken in the near future. All very positive! IMHO!

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    • Yup, the risk or reward of how the market accepts the offering is all on the underwriters.

      I think, ( but have no factual info to back up this thinking) the underwriters try to peddle a good chunk of their allotment internally at the offer price, first to gauge interest, next to reduce risk and next to reduce the amount of their capital needed to close since pre-sold shares settle on the same day the underwriters have to pay nrf.

      I suspect, if they feel very strong interest in buying at the offer price, they hold back on preselling in order to sell higher in the open market. While I was watching level two this morning I noticed some very large blocks offered at 11.68 and 11.69 (like 100,000 shares). Just felt to me like these large blocks offered were underwriters trying to skim a few extra pennies above the offer price, but I don't have a shred of factual evidence to back up my feeling.

      Doesn't matter to me. I hope the underwriters make a ton of profit on this offering.

 
NRF
18.86+0.35(+1.89%)Sep 2 4:05 PMEDT

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