What are the price fixing methods in an IPO?

There are two broad ways to fix shares price for the IPO issue; book-building and fixed pricing method. In the book-building process, merchant bankers decide the price range whereas, in the fixed price method, shares are issued at a specified price. The process of IPO valuation to fix the issue price includes a thorough analysis of market demand for the IPO, the company’s growth potential, and a comparative analysis with industry peers.