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Most IPOs are considered undervalued due to several factors, including the company's desire to attract investors by offering shares at a lower price, which can lead to higher demand and a successful launch. Additionally, underwriters often set conservative pricing to mitigate risks and ensure that the stock performs well on its debut. Market conditions and investor sentiment can also contribute to initial undervaluation, as companies may not fully reflect their future growth potential in the initial offering price.

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3w ago

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