The closing price at the end of the first day of trading reflects not only how well the lead manager priced and placed the deal, but what the near-term trading is likely to be. For example, IPOs that shoot up 100%+ on their first day of trading are likely to fall back in price on subsequent days due to profit taking. Conversely, IPOs that break offer price immediately are likely to drop further as institutions bail out. Breaking the IPO price right out of the box is a poor reflection on the lead manager’s pricing and placement. In most cases, however, IPOs average a first-day close that is about 10-15% higher than the offer price.