Where can I know the performance of different new stock on the first day (open and close)? Is it normal that a new stock will gap up on the first day?
A share price of $25 puts the value of the entire company at $10bil. Merrill has a market cap of $81 bil, Goldman $96bil, Lehman $41bil, Schwab $24.5 bil, and Tradestation, $603mm, just for reference. If you think IB can increase revenue over time while maintaining very low staffing levels and expenses, then the company may very well be worth $10bil. OTOH, they did a pretty good job of outlining some of the risks to their business in their prospectus, and I am a bit skeptical. I also wonder to what extent the personnel expense line item has been held down by stock grants. As for dutch auction strategy, it is fine for one individual to bid $100 for shares and pay the expected auction price of +-$25, but if there are too many people following this strategy you may end up paying $50. If I really wanted to get in on this IPO I might bid $30, but I wouldn't bid $50 or $100. My only experience with dutch auctions has been US Treasury auctions, and dealers very often unintentionally end up paying a greater than market price by using this very strategy.
Trader Herry, Check out the following info: http://www.interactivebrokers.com/IBIPO/index.php http://ipo.interactivebrokers.com/ I hope this helps. Tom