Maybe it's not a (initial) public offering, but a private placement?
Years back, I once read that private placements on average had much better returns than the stock market. But much higher risk.
And, just because it used to be true, doesn't mean it is today... maybe people have become so excited about placements&offerings, that the terms aren't as good as they used to be.
I wouldn't buy into one unless I had a very good understanding of the company's accounting, and could convince myself that my price is cheap.
I was once offered a private placement (friend of a friend) but didn't bite, since the company had no profits, and I couldn't figure a value. It eventually had an IPO, and I would have made out nicely. Oh well.