What role investment banks have in taking a company to IPO?

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I am curious to understand how a company valuation works? What determines a price of a share and the number of shares to be issued to the public?

Do Investment banks/initial investors buy shares before the IPO and at a lower price than what would be available to the public?

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2 Answers

Anonymous 0 Comments

Investment banks play a pivotal role in IPOs by assisting companies with valuation, underwriting the offering, and guiding them through the regulatory process. They act as intermediaries between the company and potential investors, ensuring a smooth and successful transition to the public market.

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