It all comes down to supply and demand in the market once the shares become available for trading.
If more investors are eager to buy the stock, the demand increases, which pushes the price higher—resulting in the stock being listed at a premium.
On the other hand, if there’s more selling than buying, the price drops, and the IPO might list at a discount.
Investors’ decisions to buy or sell are driven by various factors, but the most significant one is the company’s future prospects. If investors believe the company has a bright future, there’s likely to be more buying activity, which could lead to a premium listing. If doubts or concerns about the company’s growth emerge, the opposite might happen.