[anonu]

The answer, like most things in life, lies in between.

Yes, in an ideal world you "price it right" and on IPO day the stock doesnt move up or down from the opening price.

Optically, it looks a lot better to price low and have the stock rise.

Additionally, there is something called an over-allotment option (aka greenshoe) that allows banks to sell more shares than initially allotted, to help stabilize the IPO price. This is usually more $ for the banks.