IPOs Are a Magic Trick Where the Assistant Gets Paid More Than the Magician.

Press enter or click to view image in full size

We pretend IPOs are about “going public” and “credibility.”

They’re about cashing out and topping up the war chest.

And that’s fine — until the pricing theater starts.

Two prices rule the show.

One for institutions blessed by the underwriter.

Another for everyone else who gets to buy after the confetti.

When demand erupts, the “pop” used to be bragging rights.

Now it’s a wealth transfer.

Figma priced at \$33 a share, opened around \$85, and closed day one near \$115.5.

The company raised \~\$2B when demand was screaming for a valuation more than double at the open.

Press enter or click to view image in full size

“Had Figma priced closer to actual demand, say at $90/share, it could have potentially raised ~$5.5B, nearly 3x what it did. That’s over $3B in potentially lost primary capital.”

That delta didn’t go to the builders or the balance sheet.