It is reminiscent of a 1999 IPO. MercadoLibre (NASDAQ:MELI) priced at $18, the top of its range and at the time of writing this post, is trading at $36, a nice 100% gain for those IPO investors.
At this price, the market cap is already $1.6 billion, making EBAY's (NASDAQ:EBAY) 18.5% stake worth about $330 million. As I mentioned in a previous post, EBAY is the only major shareholder not to have sold any shares in the IPO, a move which has proved to be astute.
That said, with a forward 2007 P/E of close to 400x, market expectations of Mercadolibre are high and it will be interesting to see how it plays out with EBAY over time.