[oroup]

The system works best over the long term if IPO shares are a little bit underpriced. Bankers have no trouble moving them and earning their fees, buyers are happy to take them because they get some pop and the company feels like they captured most of the value from the shares they sold.

A big pop says the shares were underpriced and the company left money on the table. A decline means the shares were overpriced and the buyers may become reluctant in the future.

For a company that only IPOs once, they don't really care if buyers become reluctant next time but they do care if a narrative develops that they have a loser stock.