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.

Mentioned in ?

References in periodicals archive ?

"Auctions vs Bookbuilding and the Control of Underpricing in Hot IPO Markets," Review of Financial Studies 16(1): 31-61.

UNDERPRICING AND LONG-TERM PERFORMANCE OF IPOS: EVIDENCE FROM EUROPEAN INTERMEDIARY-ORIENTED MARKETS

Dummy variable 1 is used as a proxy for IPO issued during hot IPO period, and 0 is used for cold IPOs.

Determinants of IPO Short Run and Long Run Performance: A Case Study on the Listed Firm of Pakistan Stock Exchange

'That's going to be a hot IPO. If you look at its financials, it's much better than its competitors,' said Manny Cruz, chief strategist at stock brokerage Asiasec Equities.

Demand for shares of Eagle Cement surges

During hot IPO markets, such as the biotechnology bubble of 1999-2000, huge amounts of money was left on the table.

Leaving money on the table in venture-backed biotechnology IPOs

measures should be considered to give retail investors access to hot IPO

Investor participation in initial public offerings

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.

La Quinta shares rise after IPO raises $650 mn

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.

Ordering up; Hot IPOs satiate investors in slow-growth economy

(I should disclose that I plan to invest in this company - not necessarily because I think that it will be the next hot IPO, but because I think that it exploits some interesting and accelerating trends.

The insider brain gain

Investors are less likely to truthfully reveal their demand for a hot IPO if this indication is only likely to push up the offer price.

Pre-operating performances and IPOs after market returns

Therefore, our study provides evidence of the effectiveness of Rule 2720 in both cold and hot IPO markets.

How independent is a 'qualified independent underwriter'?

(61) IPOs that immediately trade at a premium in the secondary market are known as "hot IPOs." (62) The late 1990s saw one of the most fervent "hot IPO" markets, especially with respect to IPOs by internet companies.

The competing paradigms of securities regulation

Like my old boss Bill Bradley, who at this point eight years ago was being compared by New York magazine to a "hot IPO," Obama will enthrall the elites in 2007, but come New Year's Day, normalcy will return.