Every IPO on its listing day has a pre-open session that starts at 09:00 am, orders can be placed from 09:00 am to 09:44 am, order matching happens between 09:45 and 09:55 am during which time the opening price is also discovered. The regular market starts at 10:00 am. The purpose of the pre-open session is to discover a price for the stock that’s getting listed. Buyers and sellers come and place bids and offers respectively after which the ‘equilibrium price’ of the stock is discovered. During this phase, you can’t place market orders.
This is the reason behind why issue price and listing price are not same right?
Issue price- at which shares are offered for sale when they first become available to the public…
IPO is then listed in exchange.
Listing price - the opening price of the share on the listing day.
If there is huge demand but less supply then the listing price is higher than issue price and if it low then the listing price will be less than issue price.