Gurley argues IPO bankers handpick both price and allocation, creating expected first-day pops for decades.
“So it's a handpicked price and it's hand allocated. And for the past twenty five, thirty years, you have these pops that have become expected,”
Gurley argues IPO process has devolved from wide marketing to hand allocation among 10 to 15 firms.
“I think there that it used to be that the IPO process was about disseminating and marketing and selling far and wide, and it's become a game of just hand allocating shares to the same 10 or 15 firms.”