TC, I'm not sure that is always the case. I have seen many IPOs come out with a low and high price range. You've heard "IPO was priced at the high end of the range" (usually done the night before the stock starts trading) - just means they were targeting a number but there were more bidders on the stock than shares available. They just raise the IPO price at that point - raise a little more money than target, and establish an initial trading price.
On real hot stocks, a lot of time the IPO price is set at X, but the first trading price comes off at X + %X. I can't remember which stock it was, but during the dotcom boom, I bid on a hot issue at around $30/share - the initial trade was over $50! Needless to say, I did not get my buy filled! But those guys with the inside track to purchase IPO stock did real well, real quick.
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