The study looked at how reputable underwriters affect the pricing of initial public offerings (IPOs) in China's Growth Enterprise Market. They found that companies with prestigious underwriters tend to have lower initial returns on average. These underwriters help reduce underpricing by quickly listing the IPO, choosing high-quality firms, and improving communication between companies and investors. However, when institutional investors are involved, more underpricing occurs because they get IPO shares at a lower price through private placements. This shows that institutional investors play a role in high underpricing, which is partly corrected by underwriter reputation.