Why are European IPOs so rarely priced outside the indicative price range?

• 成果类型: Article; Proceedings Paper
• 署名作者: Jenkinson, T; Morrison, AD; Wilhelm, WJ Jr
• 署名单位: University of Virginia; University of Oxford; Centre for Economic Policy Research - UK
• 刊物名称: JOURNAL OF FINANCIAL ECONOMICS
• ISSN/ISSBN: 0304-405X
• DOI: 10.1016/j.jfineco.2005.05.001
• 发表日期: 2006
• 页码: 185-209
• 关键词: IPO underpricing; Bookbuilding; information acquisition

摘要

Unlike in the U.S., the initial price range for European IPOs is seldom revised, although issues are often priced at the upper bound. We develop a model that explains this seemingly inefficient pricing behavior. As in Europe, but not in the U.S., underwriters in the model obtain information from investors before establishing the indicative price range. A commitment to stay within the range is necessary to extract private information from investors. ours is therefore the first treatment in which the bookbuilding range has a clear economic role. The model has important implications for empirical research based on European primary market data. (c) 2005 Elsevier B.V. All rights reserved.