Because the process is just not that easy to do and stay within the SEC rules. It's been tried on a small scale.
it's fine one can buy stock at IPO, then one is trading against the probability. The odds is quite rare for an IPO to continue to go higher after the IPO . I think the reason could be it'd take time for smart money to weigh in the potential of a stock before committing big money. there were several red flags for BABA IPO 1) typical pump and dump upgrades [big money always trade against retail money] 2) the gapup (it seems there were not many buyers at $100. Big greedy sharks already squeezed the last drop of premium
Sorry, that's totally wrong. It would have made extra 38% for the company if IPO price was $93. It's not fair to say that GS did a great job of underwriting if price moves up 38% when trading starts.
The company did not want the IPO priced that high. They knew that if they did that, the hurdle would be too high to maintain the price over time. This was where the company and the underwriters wanted it priced. You make it seem like Jack Ma had no say. This was his decision to price stock the IPO at $68. 1245
Why does it matter what was their reasoning? At the first approximation 10 billion dollars was left on the table, this is not a great job of underwriting.
1. Most wall street people are not so smart as main street thought 2. There are still a few wall street people are very smart 3. Baba down 5% proves we are right 4. I am shorting BABA from 91 US$, the stock will down below 80 God bless brave people! God bless America! and God bless brave American who are daring to tell the truth!