The Company’s share price at the time of the IPO is determined by the valuation of the Company, divided by the total number of shares at listing.
A few key factors that contribute to forming a company’s valuation include:
Hence, when assessing the price of an IPO it is about the valuation of the Company rather than the price of a share.
Once listed, the price of the shares is affected by many factors, including economic conditions and general market sentiment. The movement in the share price is then reflected in a corresponding movement in the Company’s valuation (market capitalisation).