Pricing is not a one-sided exercise. Underwriting banks are insuring a floor, that's the main roll of banks. But it's the company's management who approve a sha

Pricing is not a one-sided exercise. Underwriting banks are insuring a floor, that's the main roll of banks. But it's the company's management who approve a share price (valuation) range, if the IPO price falls within that range, management gives the go ahead to banks. If the price doubles, this is outside the control of the banks and company. Just note that the higher the IPO price, the higher the underwriters' fees... on the other side, new investors are looking for a "bargain". Pricing an IPO is just finding an equilibrium between supply and demand... and if you issue a small amount of shares, and these sky rocket, it sometimes has little to do with valuation and more with liquidity[0]. [0] https://signalvnoise.com/posts/1941-press-release-37signals-valuation-tops-100-billion-after-bold-vc-investment https://signalvnoise.com/posts/1941-press-release-37signals-...