Who decides the final price of a company's IPO?
1 Answer(s)
Binny
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.
Jul 04 2013 11:23 AM
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.