IPO pricing is structured primarily to benefit the seller — the company, its early investors, and investment bankers — not the buyer. Shares are brought to market during a period of peak optimism and media attention, which tends to drive valuations above what long-term fundamentals might justify. Once that initial enthusiasm fades, the market recalibrates, and prices often fall substantially before stabilizing. Lockup expiration periods, typically occurring several months after the IPO, can add further selling pressure as early insiders and employees become free to sell their shares.