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We view the initial stock price move (down around 20%) as excessive and are buyers on weakness.
However, the fluctuations, while having some dependence on the initial stock price, are essentially random and unpredictable.
Mr. Kane is credited with starting the bad blood by publicly asserting that the government set the initial stock price too high.
GoPro went public last year and, at one point, more than tripled its initial stock price; Woodman, the founder, is worth more than two billion dollars.
Indeed, studies have shown that a chief executive's likelihood of completing an M&A deal depends on the initial stock price reaction to its announcement.
Similar(55)
Getting that story right builds enthusiasm for a company's shares, sending initial stock prices higher.
When the company went public in February 1999, Mr. Nigam relayed the initial stock prices to a roomful of cheering colleagues.
But that is 14percentt below the initial stock sale price of $24.
Dr. Henry A. McKinnell, Pfizer's chairman and chief executive, said that it had expected an initial decline in its stock price.
Since GNC's 2011 initial public offering, its stock price has doubled, and it now has a market capitalization of about $4 billion.
After the initial bid, Genentech's stock price immediately rose above $89 a share as investors anticipated that Roche would eventually have to pay at least $100.
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