Abstract
The method adopted for pricing in an Initial Public Offering is a key issue in the studies on business valuation. In particular, various researches sought to verify which valuation methodologies are preferable in the context of an initial public offering. 
 
 The review of the main literature shows that Discounted Cash Flow, Market Multiples, Dividend Discount Model and, even if just to some degree, Economic Value Added are the most popular methodologies in the valuation practice. 
 
 The comparison among different valuation methods, proposed in the literature and variously applied in national and international practices, reveals the necessity to pay more attention to valuation mechanisms that drive the pricing of the shares to be listed.
 
 The topic is linked to the ever more pertinent debate on the use of different methods in professional practice: financial experts and analysts tend, in fact, to compare results according to different estimates.
Highlights
As we know, the term Initial Public Offering (IPO) defines the offer aimed at raising capital on the equity market for a company not yet listed
The first part of the article is dedicated to the review of the most relevant studies in the business literature on the methodologies adopted in the context of IPOs; this is followed by an in-depth overview of the main methods adopted in practice to estimate the value of a company being listed and the price of its shares
The results of the first relevant studies on the methods adopted to define the value of companies close to listing have shown that the banks involved in placing tend to prefer the multiples approach, ignoring those models based on cash flows (Block, 1999; Barker, 1999; Bradshaw,2002; Demirakos et al, 2004; Asquith et al, 2005)
Summary
The term Initial Public Offering (IPO) defines the offer aimed at raising capital on the equity market for a company not yet listed It stands as one of the most important financial operations in the life of a company, as it could condition its entire life cycle; for this reason, it has attracted a great deal of interest in the business administration literature. It is set to analyse the main valuation methods adopted in practice to estimate the value of a company and, the price of the shares it is about to issue To this end, the first part of the article is dedicated to the review of the most relevant studies in the business literature on the methodologies adopted in the context of IPOs; this is followed by an in-depth overview of the main methods adopted in practice to estimate the value of a company being listed and the price of its shares. The conclusions highlight the main critical issues resulting from the comparison of the adopted methods
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