Auctioned IPOs: The U.S. Evidence

Between 1999 and 2007, WR Hambrecht has completed 19 IPOs in the U.S. usingan auction mechanism. We analyze investor behavior and mechanism performance inthese auctioned IPOs using detailed bidding data. The existence of some bids posted athigh prices suggests that some investors (mostly retail) try to free-ride on the mechanism.But institutional demand in these auctions is very elastic, suggesting that institutionalinvestors reveal information in the bidding process. Investor participation is largelypredictable based on deal size, and demand is dominated by institutions.[...]

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Year of publication:	2008-11-01
Authors:	Degeorge, François Stanislas ; Derrien, Francois ; Womack, Kent
Institutions:	National Centre of Competence in ResearchFinancial Valuation and Risk Management
Subject:	Going Public \| Investment Banking \| Leistungsbewertung

1. Introduction
2. The IPO Auction Mechanism
3. The data
4. Summary statistics
5. Bidding and the Potential for Free-Riding
6. Investor participation
7. The elasticity of the demand curves
8. Pricing
9. Flipping
10. Investor returns
11. Conclusion
Bibliography

Persistent link: https://www.econbiz.de/10005868779