Death Star IPO

Written By:
Paul Tracy
Updated October 2, 2020

What is a Death Star IPO?

A Death Star IPO is a wildly successful IPO. The term is a reference to the Star Wars movies, in which Darth Vader's Death Star battle station could pulverize other planets with a single laser beam.

How Does a Death Star IPO Work?

For example, let's say Company XYZ invents a cure for cancer and patents the invention. The company can change the world and make its owners fabulously wealthy, so investors are drooling over the company's upcoming $900 million IPO. The stock starts trading, and on its first day the share price triples. This is a Death Star IPO.

Luke, I'm your broker.

Why Does a Death Star IPO Matter?

Death Star IPOs get a lot of anticipatory press, a lot of interest from investors and a lot of media coverage. They also tend to "explode" on the first day of trading and can influence the rest of the market.