How the listing price of any IPO Stock will be decided

After IPO when the stock is listed in the exchange, how the listing price will be determined.

The listing price (usually a price band) is decided by the company itself based on their perception of what the price should be. The price is arrived after doing a valuation of the company.

However after listing the price at which it will trade depends on the demand supply of the stock.


Isn’t what the company decides(the price band) the issue price? Listing price is the first price that is recorded on the exchanges, which is completely based on demand and supply ?

Hmm…tricky, I guess issue price and listing are used interchangeably in the day to day conversation. But ya, Issue price is the right term I guess.

Thank you Karthik and Nithin. I was looking for listing price, I was assuming it will be decided by company or exchange… now its clear that it is based on demand and supply on the listing day. May be on pre-market price discovery will take place.