If you really want to get the full market value out of your IPO, you should use something like a Dutch Auction https://www.investopedia.com/terms/d/dutchauction

If you really want to get the full market value out of your IPO, you should use something like a Dutch Auction https://www.investopedia.com/terms/d/dutchauction.asp https://www.investopedia.com/terms/d/dutchauction.asp IIRC Google did that, and didn't experience a first-day pop. The company sells its shares to the underwriter at the IPO price; so the company gets the money up front from the underwriter. It is in the company's interest to price it as high as it can; and in the underwriter's interest to price it as low as it can. If the underwriter wins, you see a pop; if the company wins, you see flat or a decline. This is why a Dutch Auction is the best option for IPOs, but underwriters hate that (insert "the underwriters hate him!" meme).