What Is IPO Pricing?
IPO Intelligence • The IPO Process
What Is IPO Pricing?
How the final price per share is set.
Price Range
Set weeks before roadshow. E.g., $18-$20. Implies valuation. 100M shares FD x $19 = $1.9B cap.
Discovery During Roadshow
5x oversubscribed at top = raise range to $20-$22 or price at $23 above range.
Final Pricing Call
Night before IPO, 4-8pm ET. Board + banks. "Book $5B for $200M deal. Recommend $23." Board approves.
IPO Price vs Opening Price
IPO price = company to institution. Opening price = institution to institution/retail. Pop is intentional to reward holders.
Greenshoe
15% over-allotment. If stock falls, banks buy to support. If rises, company sells extra shares.
Hub: The IPO Process
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What Is IPO Pricing?
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Reviewed by Erwin Castro
on
Thursday, September 17, 2026
Rating:
