How is the IPO’s price calculated?
There are several factors that can affect the calculation of a company’s IPO’s share price. Perhaps the biggest one is public demand, during the subscription period, for the company’s stocks. If there is high demand, the share price will rise, and if not, the share price will drop. Another important aspect that could be to the detriment of the IPO’s share price is the company’s growth expectation, since usually the reason behind a company’s aspiration to go public is to raise money for expansion.