Yes. In the past, mispricing this badly would lead to recriminations for the underwriters, including lawsuits and lost business. For some reason, the financier

Yes. In the past, mispricing this badly would lead to recriminations for the underwriters, including lawsuits and lost business. For some reason, the financiers were able to convince the gullible tech founders that giving up 50% or more of the IPO to the financier's best buddies was a good thing. And in their greed, the founders gladly went along, screwing themselves and their employees in the process. (Theoretically, the underwriters are granted a pop because of the risk they theoretically undertake. But by the time the IPO occurs, the underwriter has already lined up sufficient buyers and there is no longer much if any risk, certainly not a level of risk justifying most of the gains of the IPO).