Isn't this just the various banks pulling capital back out? They invested lots of money in the days after the IPO to keep the price close to the target (to avoid spooking investors).
The strategy behind the high dollar IPO was to maximize the return to the early investors who wanted to cash out and who were influential in the IPO negotiations.
The investment banks look at the IPO price in terms of the risk that the sell side of the firm will look bad. Once sufficient time has passed nobody assumes the bank had anything to do with propping up the price weeks after the IPO, when in fact it has lots of control over this.
Also, the relationship between share price and marginal supply and demand is by no means likely to be linear.
The strategy behind the high dollar IPO was to maximize the return to the early investors who wanted to cash out and who were influential in the IPO negotiations.
The investment banks look at the IPO price in terms of the risk that the sell side of the firm will look bad. Once sufficient time has passed nobody assumes the bank had anything to do with propping up the price weeks after the IPO, when in fact it has lots of control over this.
Also, the relationship between share price and marginal supply and demand is by no means likely to be linear.