A fund manager believes the merchant bankers managing the Eroad float priced it at the bottom of the indicative range in the hope that the shares will begin trading at a premium.
Earlier this week, Eroad shares were priced at $3 a share compared with the $3 to $3.80 range. That values the company as a whole at $180 million.
Eroad's pricing came after the shares of several floats, including Serko, ikeGPS and Scales, debuted at a discount.
Harbour Asset Management managing director Andrew Bascand said he rated the Eroad business.
"We've had a few IPOs recently that have debuted on the market a little bit weaker, potentially because their pricing range has been a little bit higher.
"And I think, with respect to Eroad - a good company obviously exploiting great technology and new markets - it obviously has decided to price the stock at IPO where they think it will have reasonable after-market so investors are getting in at $3.
"I guess the company must expect that at that price there could be a good after-market in the stock. We'll have to wait and see. It doesn't actually list on the Stock Exchange for almost a couple of weeks, so it will depend on what markets do between now and then as well."