If you say that they are experienced, then they certainly have their own reasons for ignoring IPOs, and if they run advisory services etc., their reasons are even more stronger, because they know more than others.
And with the explosion of data and participation from retail, a lot of details about a company that is coming to the IPO are available, from a lot of different sources, including the company itself. And some experienced investors might have even more information from their own sources.
And some people apply for IPO don’t look beyond the IPO level, they don’t look at it as a company they want to buy, hold for a long time. They are applying just for the listing gains, and if they don’t get allocation, and if there is a lot of hype, they want to buy after listing because of FOMO, they just want to have a piece of the action, so to speak. No experienced investor does this.
And I am guessing such experienced investors, who know about the business may want the hype to cool down and wait for the price to come down if they think the valuation is high at the time of IPO. And I am also guessing such investors, who believe in the story, don’t mind applying for an IPO, because they know that the price is going go up even after listing, and that the demand is not because of hype, but because of the merits of the business, as some IPOs are worth applying for.
Not that it is always true, but I think it is Lynch who said - IPO means It’s Probably Overpriced.
Just my thoughts, have some experience with applying for IPOs, did not follow the price after I sold them, because I did not look at them as businesses I want to buy for long term.