Who decides listing price of IPO?

Stock exchanges set the listing price of IPO shares on the day they are admitted to trading. To determine the listing price, the exchanges conduct a special one-hour trading session (pre-open trading session). The pre-open trading session takes place between 9:00 and 10:00 a.m. in three parts. At 10:00 a.m., the exchanges announce the listing price, and upper and lower limits are also set in order to control the price movement on the first day.

In pre-open trading sessions, exchanges collect buy and sell orders in the first 45 minutes. Based on these orders, an equilibrium price is determined, i.e., the price at which most orders match. This price is called the listing price. The orders that meet the price criteria are executed in pre-open trading session at 9:45 a.m., and the remaining orders are moved to the regular trading session, which starts at 10 am.