Efficient Market
Logically the company should IPO at exactly what the market thinks it is worth and so it should trade at exactly that price.
The wild first day 100% rises in IPO were an example of either gross stupidity or being forced to give 20% of the company to the banks underwriting the IPO who withhold liquidity and then immediately sold to bigger fools
With smarter pre-IPO investors, the threat of a direct listing, founders keeping bigger stakes, limits on employees cashing out - you should expect saner IPOs
Biting the hand that feeds IT
