The result is a price that reflects what people are truly willing to pay for the stock and the likely allocation of shares to long-term investors rather than speculators. As in a typical auction, the highest bidders win. But there are two important differences. In the OpenIPO auction, bidding is completely secret, and winning bidders all pay the same price the amount of the lowest bid at which the deal can be completed. Access the sample auction which illustrates how it works.
All investors pay the same price and never more than they bid.
The issued stock will more likely be purchased by investors who want to hold the shares, not 'flippers' who sell for a quick profit.