Can someone explain the IPO play from Industry season 2 episode 2?
I think this was the best episode of the series and probably the most realistic trading floor depiction I have ever seen in a TV show or movie. Now i want to know what actually happened because I don't completely understand the scenario most probably because there is too much British lingo in dialogues.
Why does Rishi has an exposure? Is it because Pierpoint is the lead runner of the IPO?
Was Harper able to identify Anna's funds position with regards to the IPO on basis of the FX trade? How realistic is that part?
I had the same questions about that play. I also was challenged by the lingo. But my main question was Harper’s call to Anna. First- why did Harper know about Anna’s Fx order - could she see it through the Pierpont system? Then how did that call about the Fx trade at open lead her to know Anna intended to buy the stock in the secondary market when it began trading? Anna didn’t say that? It seems like a big assumption by Harper to say Anna has to convert her cash first and she’s doing that for the purpose of purchasing the stock in the secondary.
help - what am I missing?
Don't exactly remember the specifics and was a couple of beers down so my explanation may not be 100% accurate but let me take a stab at it.
This is my broken understanding of it. If you have any more questions let me know. I'll probably rewatch the episode to edit this answer and make it more refined and accurate.
I think you nailed it. I had to ask this question because even in a business school the stock sales process on trading day is not properly explained. Looking only at this episode i realized how brutal it is to work on a trading floor. And this situation also points out that there is still scope for humans to function even on equities desk. Its probably the reason there are equities execution jobs still available in market.
One good thing i noticed about season 2 is that Rishi is playing a bigger role....i just realized that in 1st episode he was angry at Harper because she was not bringing in any flow to the desk....In first season i saw him as a very confident trader who was not nervous at all when Adler came to axe people.
Honestly doubt trading floors are like that except once in a blue moon.
Why would Harper need to call Anna to determine her interest? Wouldn't she basically be able to see the FX order on the system? Did she screw over Jasmin with this? Couldn't decipher the glance at the end between them.
Thanks!!
Has no one here worked on an IPO? Anchor investors (Felim) don’t just “drop out” at the last minute. This show continues to be incredibly stupid.
Seemed like IPO happened a while back and they basically bought a big block from an insider / initial investor at a 3% discount who couldn’t sell in open market or through directly marketed follow on. Selling that much at once would crush the stock. So they had to offload it to institutional investors and only way people would buy is if initial IPO investors with sector expertise (like Anna) would also buy. The spread was at that 3% but if it was a bigger discount to market price you take a loss (which stressed out Rishi). It’s basically a privately placed secondary sale, although typically not common through a trading desk.
But i guess banks involved in syndicate get shares on discount to distribute it to public on par value....i might be wrong but i feel like i heard this in one of the lectures
Is this show any good? I swore off finance shows after what they did to my boy Billions.
It's entertaining to me. Even if it's just for things like this thread where those of us who've actually been involved in IPOs and know how it really works get to dissect it and commit schadenfreude. I get that they have to "hollywood-ize" the topic to make it more palatable to a broader audience, but sometimes we like to watch intelligent shows instead.
Like for instance if they're doing the FX deal in order to facilitate the purchase in USD it'd mean that it would be listed on NYSE or NASDAQ (even if this block of shares is an ADR, which is another thing they fail to address) which would mean SEC filings that would dictate all the intricacies of who owned what blocks from the jump, the discounts applied, fees applied, etc (my contribution to the nitpick fest is coming from SEC/SEDAR/HMRC reporting).
And what they did to Billions is an absolute travesty. At least the first few seasons really were financially literate before they joined the "get woke, get broke" train.
Industry season 2 is out? Time to watch that hot middle eastern broad get pounded by the eton chad again.
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