The average returns on the first day of trading following an initial public offering are significantly positive suggesting that firms leave a significant amount of money on the table. Why would a firm be willing to underprice (accept lower than market val

The average returns on the first day of trading following an initial public offering are significantly positive suggesting that firms leave a significant amount of money on the table. Why would a firm be willing to underprice (accept lower than market value) for their stock? What was unique about the Google IPO? How did this affect the underpricing and/or subsequent returns?