IPO Analysis - DOCTOR CARE ANYWHERE GROUP PLC, page-73

With any IPO ...

• if strong gains are made on the first few days a good proportion of the holders sell down to take their profit
• if strong gains are NOT made a on the first few days a good proportion of the holders sell down and get out before they are making a loss

Then you have people who bought into the IPO or pick up stock cheap after the IPO because nothing has changed with respect to the company.

Eventually, the sellers leave, and with lots of stock in escrow the free float isn't easy to get hold of ... POP

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