NetSuite IPO, Look at it?

What makes them think their company worth twice more than the price they originally intended at 13/share?

and the trading price remains flat line at 26..

will you buy it at that price? or wait for a drop?

Hi Christmas Apple:

Determining the IPO price is arbitrary. It is both objective and subjective. Underwriters determine the public offering price and look at the company's financial statement, industry trends, growth rates, investor confidence and timing of the IPO relative to market potential.
Look at the life of an IPO as parallel to a retail store product.
Mfg> Wholesaler> distributor> retail store> customer.
The initial group of stocks are sold to the underwriting group who set a price and call upon all their contacts to purchase large blocks of the stock. Sometimes these blocks are welcomed, other times the underwriter strong-arms the contacts to purchase (favors owed, or promise to get them a favored IPO later). The contacts purchase at a price above what the original offer was and they in turn sell to institutional buyers and extremely large investors (frequently day traders). In turn the investment groups break apart the blocks and sell them to brokerages who in turn offer (if any are still available) to the general public. You can see the potential for large markups.
Look at VMW. The IPO opened around $25, but didn't hit the street for peons like me to purchase until it had been marked up to about $50. I bought it at $54, (and have since sold); it has risen to a high of $125 and has declined to its current $90. Caveat! More often than not, the price drops well below the original street price, but usually above the opening IPO price.
Many things can effect the price during the IPOs first day. There is always a large percentage of "day traders and speculators who flip the stock within 24 hours. Occasionally the underwriter (with the permission of the exchange) can offer stabilizing bids which will support a stock price by buying back the stock helping to reduce the high selling pressure from investors looking to "flip" their purchased shares for a quick profit.
Generally IPOs are risky because there is no track record to compare. Most of the time within the first 8 hours of trading, IPOs will rise quickly hit the street inflated and profit takers will bring the price down quickly, as the stock temporarily becomes overbought. selling to the "retail purchasers."
All in all...I would leave IPOs until they settle down.