No one really knows what is tolerated by public markets right now. Tech stocks are in a speculative bubble caused by zero rates and a flood of money from the Fed.
It isn’t as if Airbnb can’t sell more shares at $150 now in a secondary offering if they wanted to. The IPO is just one point in time.
They can raise more more at $150 in a secondary if they wanted to.
The consequence of setting too high and cratering your stock the first day is that employees are taxed based on IPO price. Imagine if you owed taxes at $150 and six months later it was at $70. That would be a nightmare.
And I think you’ve been reading too much Bill Gurley.
It isn’t as if Airbnb can’t sell more shares at $150 now in a secondary offering if they wanted to. The IPO is just one point in time.