Spectur IPO by Alto Capital, page-67

following may be the reasons of under pricing

1) Alto is one of the very few decent lead manager who actually looking after IPO investors by pricing IPOs very cheap for potential huge upside after listing

2) Some of aggressively priced recent IPOs did not do well after listing

3) Owners of Spectur are not greedy and looking after IPO investors interests by allowing them to invest at very cheap EV . It also demonstrates that Owners are in it for a long term and they are looking at a bigger picture .

4) If spectur will need any more money in the future , investors will trust them and will give more money to fund their future projects

5) As a lead manager you need few BAD ipos to ruin your reputation and Alto do not want to take that risk for earning few quick dollars .

6) After listing 50 to 100 % higher ( Which i am expecting it should open at ) , people who missed out in IPO will still be able to buy sp3 at a reasonable valuation .

Conclusion :

Its a win win for Alto , IPO investors , Owners and future investors .

DYOR