Delivering on a promise is a tough proposition, and to consistently deliver requires excellence on all fronts. When companies offer their shares to the public in the form of an IPO, they do so by touting their financial strength, balance sheet solidity, market opportunity, strong competitive positioning, an efficient management team, viable strategy and resilience to weather any kind of adverse events, among other things.
If investors warm to the companies and the promises they dole out, they will flock to the companies in droves, and consequently, the IPO becomes a smashing hit.