How does IPO make you rich?

An IPO can make you rich if you invest in the right company and hold it long enough for the business to grow. Listing gains can give quick profits, but long-term compounding creates real wealth. 

However, not all IPOs turn out to be successful. There is always a risk that the stock may underperform or fall below the issue price, leading to losses. So while IPOs can create substantial wealth, they also carry uncertainties, and there is no guarantee that every IPO will make you rich.

To build wealth from IPOs, you must:

• Choose companies with strong fundamentals
• Understand the business and valuation
• Avoid hype-driven issues
• Be willing to hold long-term when the company is strong

Wealth comes from quality and patience, not luck.