![Quote](images/misc/quote_icon.png)
Originally Posted by
Xerof
I was asked today by an acquaintence whether there is a prospect of the Instalment Receipt secondary market price, ceterus paribus, being discounted if there is a differential between the retail cap of .60 cents, and the (higher) institutional price? ($1.80 for example)
I'm leaning towards 'no' because anyone/everyone who buys on the market will be obligated to pay the higher price anyway, and retail holders only get the cap benefit if they don't sell. So I guess the 'obligation price' post IPO will always be seen as $1.80 and this is the benchmark on which the market will trade
Interested in others' views on this, but makes me think if you want it, buy in the IPO. Those who are going to wait and see where it settles, could be giving up 20 cents.
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