The stock issue price is linked to the enterprise value, which reflects the profitability and market expectation of the enterprise.
For example, you spend 65,438 yuan to start a company, and then you often make money. The company is worth 500 thousand.
When you issued shares, you said 1 yuan per share, 65,438+10,000 shares.
Stock issue price, investment banks and subscribers think that the company is worth 500,000 or 800,000, so each share should be 5 yuan or 8 yuan.
The issue price of a stock can't be lower than its face value, because without management ability, a company that doesn't make money can't go public. theoretically
Below the face value, it will be forced to withdraw from the market, so some companies will merge their shares.