What problems arise if the offer price is set too high?

If the offer price is set above an appropriate level, it can hurt investment returns, for example by causing the share price to fall below the offer price after listing.

In a past FSS analysis, the larger the offering and the lower the book-building and subscription competition ratios, the more often the closing price on the listing day was below the offer price. However, these are only past statistics and do not predict the outcome for any individual stock, so it is important to check the basis for the offer price yourself.