Investing in the Idea, Start Up Company

The acimi ipo was priced at 18 % of the first day's closing price. It may well be that issuers intentionally underprice their offerings, so that the first day's rise will enable them to finance losses and expansion through additional stock issuance. How much due diligence is being done on each new issue? How strict are the valuation parometers they are using? And what will happen when the options used to attract employees and to pay service providers begin to be exercised and the shares sold?"