bigband.bmpBroadband router company BigBand went public today, and its stock rose 33 percent on its first day of trading, which everyone said was a good thing.

Scott Sweet, managing director of said it was “particularly impressive.”

But it means the company could have sold its shares at a price say, 25 percent higher — and still have given public investors a decent pop of a few percentage points in reward for buying the new stock. In other words, Bigband loses because it could have pocketed at least $35 million more. The investment bankers taking BigBand public priced it too low.

Or at least, so it seems now. You never know. The investment banks screwed up the IPO of WiMax company Clearwire last week, taking that company public at a price that was too high — either that, or bankers and their clients didn’t buy enough stock to support it in the early hours after the IPO.

We should bring back the Dutch Auction, the method of IPO where shares are bid on beforehand so the market demand is assessed, vastly diminishing the risk of volatility after the IPO. That’s the process Google used (see story at the time), and while Google’s IPO saw some rocky stages early on, they weren’t a result of the Dutch Auction procedure per se.