And that assumes it opens at $32. No doubt it will start near the top of valuations. What do you expect with their revenue, growth rate, and profitability?
To clarify, the range they are talking about is the expected offering price, the price the underwriters reach with institutions. Based on recent comparable ipos, they will price over the range. That is, if you met the criteria with your broker and indicated interest before the ipo, you could potentially buy it in the mid-high $30’s.
For example, Elastic’s initial pricing range was high $20’s. They revised it to low-mid $30’s and it ultimately priced at $36. They opened (and closed) at $70. ZS estimated 10-12, raised to 13-15, priced at 16, opened at 27.50, closed at 33. MDB estimated 18-20, raised to 20-22, priced at 24, opened at 33, and closed at 32.
Are you as interested if it opens with a 30 FEV/S ? That is, if it prices at $36, underperforms ZS and ESTC, and closes up “only” 75% at $64. Because if you are, you’d have to think it is outexecuting both of those companies (along with most others in history).