Unity is seizing control of IPO pricing from bankers, a rare move that could limit first-day pop

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As Unity prepares for its stock market debut this week, CEO John Riccitiello will be making the decision on where the shares price, taking control from bankers

, with investors raising money for blank-check firms that allow them to acquire private companies and make them public.

Unity's offering is closer to a typical IPO in that new investors will get an allocation of shares at a certain price and the stock will start trading publicly the following day. However, the company is using a novel process of getting to the price and determining the allocation. Investors will submit their bids for a certain price and the number of shares they want. Riccitiello's team will then choose a price based on where the bids land. Any investors who submitted an offer below the chosen price won't receive shares. For those that put in bids at or above the final price, Unity executives will decide on the allocation, with the ability to fill investor requests in whole or in part, said people familiar with the offering.

Still, the stock could pop out of the gate when the wider universe of retail investors are able to get in on the action for the first time. Unity said in its last week that it planned to sell shares at $34 to $42 a piece, valuing the company at $41 billion at the top end of that range.

 

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The bankers do not represent the company well. They are there to make their institution clients money to continue to get fees going forward . andrewrsorkin davidfaber

Wow

bgurley

Lies, lies and more lies. ANTIFA starting fires is not the Climate Change scam, TomSteyer. should be ashamed. And your answer is Joe. No thanks.

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