Retail Fomo
“There is an element of retail Fomo (fear of missing out) returning to the primary market,” said Deven Choksey, founder and managing director at DRChoksey FinServ. “When individual investors see back-to-back listings posting strong single-day returns, subscription momentum feeds on itself. Most investors participating through IPO subscription try fulfilling their leftover appetite on the listing day. That sudden influx of retail market orders at the exchange open creates a demand imbalance, pushing listing premiums well past what business fundamentals alone would justify.”
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