Public Offering Price

Public Offering Price refers to the price at which Shares of a company are offered to the public during an initial public offering (IPO) or a follow-on offering. This price is determined by the Underwriters in consultation with the company, based on various factors including market conditions, the company’s financial performance, and investor demand.

For example, if a tech company is going public and the Underwriters set the Public Offering Price at $20 per Share, this is the price at which investors can purchase Shares during the IPO. If the offering is successful, the Shares may trade at a higher price once they start trading on the Stock exchange.

In a case where a pharmaceutical company offers Shares at a Public Offering Price of $50, and the demand is high, the Shares may rise to $60 shortly after trading begins, reflecting increased investor interest and perceived value.