I don't think there is an absolute rule. Unless you are a very large investor the odds of actually getting an allocation on an IPO are not good. Buying right after the IPO has some risk. typically a stock will pop right after an IPO. I have seen more stocks that have pulled back a few weeks after the IPO than have gone up. Facebook is a good example. It dropped well below its IPO price and then slowly went to about triple its IPO price. I have shares of LOCO that have done the same. BABA is another example. It went up about $ 25-30 after the IPO and is now selling well below the IPO. Some others like GoPro seem to have just continued to climb. On average there will be a better buying opportunity 2-10 weeks after the IPO than immediately when they do an IPO but there are exceptions.
As per my analysis, it’s totally depend upon company which you are investing, their business model and market condition. Below is image which shows the data of some old IPO’s and their performance till 1 year from listing.
Hint: If you really want to invest in IPO shares, after IPO listing. You can buy those shares which goes down after IPO listing and Retrace back near to listing price after few days. Level at which you should buy is just above 1–2% of listing price with listing price as SL or 1% below Listing price as SL.
*This is only for educational Purpose, Before taking any trade, plan you risk.
