Before the share allocation takes place, the company and the underwriters agree on an IPO share price. This price is based on all sorts of factors (listed out in the S-1), as well as interest from the Roadshow, which is part of the IPO process.
After the allocation of shares has taken place, and before the share market has opened, depending on demand, the opening price for the new publicly listed company can move.
If there is high demand from other investors, it’s likely the share price will be higher. If for whatever reason, demand is low, the share price may open at the lower end.
Learn more about IPOs
How does an IPO work?
How to speak IPO: A glossary
Are you IPO prepared?
What are the risks of investing in an IPO?
How to participate in IPOs with Hatch
How do I participate in IPOs with Hatch?
How is IPO participation different to other IPOs on Hatch?
How will the first IPO be different to future IPOs on Hatch?
Placing and updating share requests
Is there a minimum IPO share request?
Is there a maximum IPO share request?
Am I guaranteed the amount I request during an IPO?
Can I cancel or update my IPO share request?
When will I know if my IPO share request was successful?
Why can’t I see my IPO shares or payment in my transaction history?
What happens if a final IPO share price is higher than the estimated range?
Why is the indicative IPO price range different from when I placed my request?