What is a public offering price (POP)?

A public offering price (POP) is defined as the price at which a company’s shares are made available to the public during an initial public offering (IPO). This price is determined through various factors, including market conditions, company valuation, and investor demand. It plays a crucial role in how the company raises capital and how the shares will be perceived in the market upon their debut.

Understanding that the POP is specifically about the initial sale of shares helps clarify its importance in the IPO process. It provides potential investors with a clear entry point for acquiring stock in a company that is entering the public market for the first time. The setting of this price involves significant analysis and strategic consideration by the company's underwriters and management team to ensure a successful offering and create momentum for the stock post-IPO.