How public offering prices impact trading on the market
In an IPO, the public offering price will be the first price at which the stock is sold. If a company opts to sell more stock in a secondary offering, the public offering price can either match or diverge from how it was previously valued on the stock market. With both IPOs and secondary offerings, investors can respond positively or negatively to public offering prices. In turn, this can have a significant impact on the company's share price on the stock market and its valuation.
For secondary stock offerings, the public offering price set by the company selling stock can have a powerful impact on where its share price goes next. If the company manages to sell a large number of shares to investors at or above the previous market rate, that's often an encouraging sign. It demonstrates a healthy appetite for the stock at or above recent valuation levels and implies that a large buyer thinks the share price can go higher.