List down the risk factors involved in applying in an IPO.

Applying for an IPO involves many risk factors. Here are some:

1. Investors may not receive any shares. If there is an excess subscription, shares will be allocated proportionately. In this case, small investors are unlikely to receive any allocation.
2. The money of investors is also locked up for a certain time.
3. There is the possibility that the shares may be quoted at a lower rate after listing. This could result in a loss of principal and interest.