Who decides the final price of a company's IPO?



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Who decides the final price of a company's IPO?

The investment bankers

The interested investors

The company's management

The company's board of directors

1 Answer(s)


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This how the process works -
1) First the bankers will value the company on the basis of DCF, Comparable trading etc.
2) In consultation with the company management they will set a price range or a price band for the IPO
3) Finally, they will solicit interest from the investors. These investors finally get to set the IPO price.

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