Selling the IPO shares on the first day of its listing could get you considerable postive gains. But there is a higher chance for the prices to rise and even fall if you wait for a more extended period.
Well, if anyone could predict the future correctly and provide you the information on which IPO’s would be doing good, then all would be rich within an instant. But that’s not the case here. A company often moves towards an IPO for the sole purpose of raising capital or for some other growth-related endeavor. At the listing price, the company’s IPO shares are relatively higher than what the investor might have paid for it.
This isn’t the case at all times. The value of one share for an IPO might be higher on listing day but could fall dramatically given the demand, popularity, company’s growth, and whatnot.
So, if you are patient and can wait out the company’s growth to increase their valuation and, in turn, the shares, the IPO will be beneficial. But to make a quick positive gain, selling your IPO shares on the listing day could be fruitful provided its higher than the investment you made per share.