Peter Smith
According to Market Watch, the average share price gain on the first day after the initial public offering is 57.5%. This figure is significantly higher than the results of an IPO in any other year in the last 20 years. The last time such a hype around the IPO was observed in 1999.
However, this does not necessarily indicate the formation a new Dotcom bubble. This year's IPO underwriters were significantly intimidated by the spring plunge and were unsure of market sentiment. Therefore, they deliberately set lower initial prices.
Peter Smith
