What is IPO listing price?

The IPO listing price is the opening price of the IPO share on the day of listing at stock exchanges. It is determined in the pre-opening session conducted by the stock exchanges on the day of listing based on the buy and sell orders placed at different price levels. The special pre-open session is held for newly listed IPO shares from 9:00 a.m. to 10:00 a.m. to determine the IPO listing price.

The IPO listing price is different from the IPO issue price and current price.

For example:

A company announces an IPO with a price range of Rs 100 to Rs 105. Based on the bids received and the subscription status, the issue price may be set at Rs 105. Later, on the day of listing, the stock may be listed at a price of Rs 110 based on supply and demand.

In the above example, Rs 105 is the issue price and Rs 108 is the listing price, so the IPO was listed at a premium.

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