A failed IPO, and the company is likely to go nowhere. Let's face it. The image is built. Successful IPO's will attract upbeat media coverage. The other one will face the wrath of investors who bet on the promise of fast and fat profits.
Lackluster stocks are unlikely to be given a second chance.
They have a few days, a few weeks to convince that they are part of the Internet wonderland. Yet, another way to look at the IPO would be to say that in the first case, the price has been set too low, while in the second, the founders and initial investors got as much money as they could. It is an open secret that Internet stocks are priced at IPO in such a way to maximize the amount of money raised and at the same time the possibility that listing will be followed by stock surge. Not only to maximize revenue for the initial investors. The purpose of the IPO is not to cash in quickly, but to create a positive momentum and to position the company among Internet high flyers.