Raj Sargule

Rackspace IPO Settles for Half Its Hoped-For Price

It closed at 10.90
If its true that an IPO is normally priced at about 10-15% discount to cover some downside for initial investors, then given the $12.5 final price, it should have closed atleast at 12.5.
The current market/economic situation could have contributed to its lower than expected closing. But shouldn't that have been considered while deciding the final price?
Seems like its almost impossible for anyone to feel the market pulse.