Pricing is hard, but yes, I think they did price this one a little too low.

That said, the goal is for shares to have a nice upward pop when they hit the open market.

This helps encourage a broader based of shareholders, protecting against the case where a big shareholder decides to dump all of their shares.

This also helps in the case where the company comes out with bad news in the near future. Shareholders who make money are less likely to sue.