They've got shareholders to worry about. The resources below are a compilation of a variety of Web sites that exist to help businesses learn about going public and deal with the transition. Besides, the IPO is when the stock will first be given a market value reflecting expectations of the stock's future value and the corporation's projected growth. A Hot Issue is a new stock that is in great demand. The price of these stocks usually soars in price at their IPO since the demand is usually greater than the available shares.
Many factors play into an IPO's success or lack thereof.
The most important of these is the company's expected market capitalization. Other factors that affect an IPO's success include the corporation's popularity in its industry, the timing of the offering relative to market activity, the competitiveness of the stock's price to comparable stocks, company's growth potential, and the reputation and ability of the underwriter.