When Sirius XM says they are offering stock at a "fixed" price of $1.50 per share, what does that mean?

Question

I was reading some finance news stories and it said Sirius XM (the new merged company) is offering a lot of shares at a fixed price of $1.50. When I checked the stock it said it was trading at $1.58 at the end of today. Does that mean that they already sold all the shares that were at the fixed price of $1.50 and the stock went up since, or is it still possible for buy shares at the fixed rate?

Answer 1

Actually, those shares were already sold.  It looks like the investment bankers handling the deal sold the shares already to interested clients.  Those shares were marketed by the investment banking firm(s)' sales people and the buyers were probably hedge funds and mutual funds.  Smaller retail investors typically have a difficult time getting access to such offerings.

There are supposed to be more shares offered down the road, but this will be at or near then prevailing market prices.  Most retail investors probably won't be able to buy those shares either.

See the following... http://www.tradingmarkets.com/.site/news...