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Glossary · PSX term

Strike price (IPO).

In an IPO, the strike price is the final price per share set from the book-building bids.

Definition

The strike price is the lowest price at which the offered shares can all be sold based on institutional demand. Retail investors in the public portion usually subscribe at this strike price.

Worked example

If book-building demand clears at Rs. 35, that becomes the strike price for the public offer.

Related on PSX Clarity

Initial Public Offering (IPO)

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