Glossary Background

Issue Price

The issue price is the price at which a company sells its newly issued shares during an Initial Public Offering (IPO). Before determining the issue price, the company typically conducts thorough market analysis, considering factors such as market conditions, investor demand, and the financial health of the company. This helps set a price that is attractive to investors while also enabling the company to raise the required capital. The issue price is crucial as it influences the initial trading price of the stock once it begins trading on the stock exchange.