An initial public offering (IPO) issue that the underwriter cannot sell easily. IPO deals become sticky when the issuer experiences adverse conditions such as systematically bearish markets, flickering demand, negative publicity, unfavorable technological changes, etc. Such factors may render the offering price unjustified (exaggerated) in the investing public’s view, and thus compel the underwriter to lower the price or withdraw the offering altogether from the market.
December 21, 2023
