The delicate art of pricing. (prices connected to stock offerings) (Selling Equities to the World, supplement to Euromoney magazine)

The basic reason for the failure of- the recent $2.1 billion Flat share offering was that the world’s investors simply were not interested in that amount of Fiat stock at the offering price, or anywhere near *It. Supply was far ‘in excess of demand, causing the stock’s market price to plunge.

Offered at a 4% discount from the September 23 closing price on the Milan Stock Exchange, the 8.5% block of Fiat common stock that poured into the market soon lost more than 6% of even its discounted value, as the underwriters falled to place the offering and sellers of Flat shares in Milan outnumbered buyers.