NYSE President Farley Discusses Biggest Tech IPO, Line (LN), on CNBC

NYSE President Thomas Farley joined CNBC's 'Squawk on the Street' to explain the process behind the opening of the IPO Line (LN).
By Giovanni Bruno ,

NEW YORK (TheStreet) --The biggest tech IPO of the year, Line (LN), went public Thursday on the NYSE and opened at $42.00 a share. The president of the NYSE, Thomas Farley, joined CNBC'S "Squawk on the Street" to discuss the stock's opening and the process behind its IPO, just as the stock's initial price was announced. 

"The IPO priced initially on Sunday night at about $33 a share. This first trade indicates north of 25% of the total offering size, which is a nice healthy size trade," Farley said.

In terms of timing behind the stocks opening numbers, Farley conveyed that patience was the main concern. 

"I didn't know, we took our time and made sure that all the institutional investors and retail investors that wanted to place orders or remove orders had the opportunity to do that. We really like the price discovery process so that when the stock did finally open, it did so in a very smooth manner," Farley explained. 

Moreover, Farley spoke about the process behind the company's IPO. 

"It's a combination of sophisticated technology mixed with good old human oversight. You have the brokers who are the on the phone with various institutional investors. And you have the designated market makers here, working with the upstairs investment bank, in this case Morgan Stanley, the stabilizing agent. Collectively all of those parties are finding the right price to open the stock," Farley noted. 

"The idea is to get that right price with the company so they being their life in a very smooth fashion," Farley concluded.

Loading ...