Module III· ECM — IPO ProcessIntermediate
Question

How does pricing work on the IPO pricing date?

Answer

On pricing date, banks review the order book, investor quality, price sensitivity, market conditions, desired allocation, and aftermarket risk. The issuer and selling shareholders choose final offer price and size, usually after syndicate recommendation. A strong book allows pricing high in the range; a weaker book may require lower pricing, smaller size, or postponement.