What is IPO issue size? How they decide IPO issue size? I am asking about IPO issue size like 5000 cr. How they decide this size and what can be maximum IPO issue size? Not IPO share price.

2 Answers 2


US centric answer:

An investment bank is hired to determine the value of the company. The IB looks at the inherent business as well as industry comparisons, growth prospects, etc.

After performing this initial valuation, later on in the process the IB does a roadshow where they travel from city to city, giving presentations to large investors (institutional, fund managers, and hedge funds) as well as analysts.

If the roadshow is successful, it generates demand for the IPO. The greater the demand, the larger the IPO can be.


If you are talking about the number of shares issued, that is completely determined by the investment bank as Bob Baerker stated. First, the amount of money to be raised is determined by the investment bank. Then, the number of shares issued is determined to be at a level that enough investors would be able to purchase them. Usually, an IPO starts with a share price around $20-$100. To determine the number of shares, simply divide the amount of capital looking to be raised by the proposed initial share price and that gives you how many shares will be issued.

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