Hot IPO

Hot IPO

An IPO that is extremely popular, leading to a dramatic rise in price immediately after the IPO. Hot IPOs are usually overbooked. They were especially popular in the 1990s during the dot-com bubble when it was common for IPOs to occur at, say, $10 per share, and almost instantly spike to $50 or $60 per share. An IPO is a risky investment in general; a hot IPO may be even riskier, especially when the company's earnings are small or non-existent, as was the case in the dot-com bubble. See also: Publicly-traded company.
References in periodicals archive ?
Despite a hot IPO market and the proliferation of appealing investment opportunities across industries, this data shows that investors believe that the government needs to do more to ensure they can fully capitalize on the prospects ahead," said Jim Atwell, national managing partner of the Emerging Growth Company practice, Deloitte & Touche LLP.
NEW YORK -- Hotel chain La Quinta rose Wednesday in its first day of trade after Blackstone Group successfully launched its third hotel stock offering since November into a hot IPO market.
GrubHub is one of four companies to go public Friday in what has been a very hot IPO market, especially for businesses in the cloud software and biotech industries.
Malcolm Weir will participate in a panel discussion entitled "The Hot IPO Window: Impact on Private Financing Deals" at 11:10am on 12 November; and Dan Grau, Heptares' President, will chair a panel entitled "How is Personalized Medicine Guiding Drug Development in 2013?
Prior literature finds that hot IPO market issuers are of the same or lower quality than cold IPO market issuers (Ritter, 1991; Helwege and Liang, 2004).
Boland (1980) found that during the hot IPO market of 1980 that "some underwriters and company promoters have grown shy about talking.
All of this doesn't sound like a red hot IPO (initial public offering) to me,'' Gorder said.
In a hot IPO, the book of orders will surpass the actual shares to be sold by many multiples.
It will take a few months following the completion of the demerger before Seagate Software is able to shape itself up as a hot IPO prospect and, in so doing, avoid a Brio-style IPO failure.
Check out today's hot IPO - and yesterday's, and the day before's.
No doubt, IPOs with weak management and control structures have been accomplished, especially in hot IPO markets when the demand for IPOs exceeds the supply.
We had a hot IPO, and investors recognized they wouldn't be allotted their entire request.