Module III· ECM — IPO ProcessAdvanced
Question

What is an IPO pop, and is it good or bad for the issuer?

Answer

IPO pop is the share price increase on the first trading day. A moderate pop can signal healthy demand and support aftermarket performance. A very large pop may mean the IPO was underpriced and the issuer / sellers left money on the table. No pop or a negative pop risks a broken IPO perception.