Initial Public Offerings (IPOs) present companies with an opportunity to raise capital while offering investors a stake in their future. However, not all IPOs succeed—many fail due to poor financial planning, overvaluation, weak business models, and unfavourable market conditions. We compile a list of the worst IPOs of all time based on the listing returns. The worst IPO list can help investors make informed decisions before buying newly listed stocks.
List of Worst IPOs
Below is the list of the Worst IPOs starting from 2018.
If you want to check more reports, here are the links:
- All-time Largest IPOs in India
- All Time Highest IPO Subscription
- Best IPOs by Sector in 2025
- Biggest IPOs by Size in 2025
- Best IPOs in 2025
- Highest IPO Subscription in 2025
- Highest SME IPO Subscription in 2025
- Statewise Mainboard IPOs
- Statewise SME IPO Reports
- Best SME IPOs by Sector
- Biggest IPOs by Applications
- Best IPOs That Doubled Investors’ Money
Key Reasons For Worst IPOs
Overvaluation & Market Hype
- Excessive hype inflates IPO prices beyond fundamentals.
- If financials don’t justify valuations, stock crashes post-IPO.
- Warning Signs: High P/E or P/S ratios, speculative business models, aggressive pre-IPO marketing.
Weak Business Models & Profitability Issues
- Some IPOs lack clear profitability paths and rely on external funding.
- Cash-burning companies struggle to sustain investor confidence.
- Red Flags: Persistent losses, reliance on funding, no competitive edge.
Poor Timing & Market Conditions
- Economic downturns, high inflation, and geopolitical risks can sink IPOs.
- Best Practice: Launch during strong market sentiment for better investor participation.
Mismanagement & Governance Failures
- Poor leadership, financial misstatements, and lack of transparency erode investor trust.
- Red Flags: Executive exits, regulatory scrutiny, hidden financial data.
Unrealistic Growth Projections
- Overpromising and underdelivering leads to stock price declines.
- Caution: Be wary of IPOs projecting unsustainable revenue growth.
Post-IPO Liquidity Challenges
- Weak institutional backing and low trading volumes increase volatility.
- Preventive Measures: Strong pre-IPO investor support, lock-in periods, and clear financial updates.
What Investors Should Watch For
- Overly optimistic financial forecasts without supporting data.
- Companies expanding too quickly into new markets without a clear strategy.
- Inconsistent financial reporting that contradicts projected growth trends.
Strategies to Prevent Liquidity Issues
- Strong institutional investor backing before IPO ensures stability.
- Lock-in periods for early investors prevent mass sell-offs post-IPO.
- Transparent financial updates post-IPO keep investor confidence intact.
Below, you’ll find convenient links for navigating mainboard IPOs on this website:
List of mainboard IPOs in 2024
List of mainboard IPOs in 2023
List of mainboard IPOs in 2022
List of mainboard IPOs in 2021
List of mainboard IPOs in 2020
List of mainboard IPOs in 2019
List of mainboard IPOs in 2018
List of mainboard IPOs in 2017
List of mainboard IPOs in 2016
Best Practices for IPO Investors
Analyze financials, business models, and profitability before investing. Be cautious of overhyped IPOs with excessive media attention. Consider macroeconomic conditions and market trends before participating. Assess leadership strength and corporate governance practices.
Final Thoughts: Learning from the Worst IPOs
IPO failures are not uncommon, and even some major companies have faced setbacks before eventual success. However, understanding the common pitfalls can help investors make better decisions.
Nevertheless, if you’re inclined to delve deeper and personally select the top IPOs of 2025 through your independent research, we offer a selection of our most informative articles to aid you in this endeavour.
- 5 tips to increase IPO allotment chances
- Step by step process to identify good IPOs
- Investors need IPO exit strategy, here is why
- Best IPOs that doubled investors’ money in 5 years
- 7 common IPO mistakes and how to avoid them
- All-time largest IPOs in India at a glance
At this point, we would also like to add a disclaimer.
All content presented on this website is intended solely for informational purposes and should not be construed as investment advice. The primary objective of this platform is to promote financial literacy and encourage discourse within our comments section. Prior to making any financial choices, it is strongly advised that you seek guidance from a qualified financial advisor and conduct thorough due diligence. IPO Central bears no responsibility for any financial decisions made under any circumstances. While our analysis and reviews are meticulously impartial, readers are accountable for the consequences of their actions and choices.