IPO Basics3 min read
What are listing gains?
The jump between an IPO's issue price and where it first trades. Exciting, but not the whole story.
Listing gain is the difference between an IPO's issue price and the price at which it starts trading on listing day, expressed as a percentage.
A one-day event
Listing gains reward those who were allotted shares in the IPO. They say nothing about the long-term prospects of the business. A big listing pop can fade, and a muted listing can go on to compound for years. MarketByte shows both listing gain and return since listing so you can separate the two.