An IPO is priced based on the size and number of orders received at different price levels throughout the roadshow. The lead underwriters typically determine the IPO Price based on this information. Conversely, a direct listing has a Reference Price, which isn't the Offering Price, but rather the calculated price of the shares after all the buy and sell orders have been received from broker-dealers. The Reference Price is used to open the stock. Transparency is critical in calculating the right Reference Price and helps reduce the chance of price volatility once the stock opens for trading. Nasdaq’s suite of IPO tools and proprietary auction technology helps to provide for control and data transparency to mitigate volatility. .