Bids and Allocations in European IPO Bookbuilding.
This Paper uses evidence from a dataset of 27 European IPOs to analyse how investors bid and the factors that influence their allocations. We have the complete books for these deals - amounting to 5540 bids - and so can analyse directly how bids and allocations are related. All these deals are priva...
| Main Authors: | , |
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| 格式: | Working paper |
| 語言: | English |
| 出版: |
CEPR
2002
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| _version_ | 1826278872315854848 |
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| author | Jenkinson, T Jones, H |
| author_facet | Jenkinson, T Jones, H |
| author_sort | Jenkinson, T |
| collection | OXFORD |
| description | This Paper uses evidence from a dataset of 27 European IPOs to analyse how investors bid and the factors that influence their allocations. We have the complete books for these deals - amounting to 5540 bids - and so can analyse directly how bids and allocations are related. All these deals are private sector IPOs where the bookrunner was a leading European investment bank. We make use of a unique ranking of investor quality, associated with the likelihood of flipping the IPO, as produced by a group of US and European investment banks. We find that 'high quality' investors are consistently favoured in allocation and in out-turn profits. We also find that bids submitted via the bookrunner and large bids received better pro-rata allocations and higher average profits. We find that a very small proportion of all bids submitted during the bookbuilding contain price limits - especially in hot IPOs - and, in contrast to Cornelli and Goldreich (2001), we do not find that that such bids are favoured in terms of allocation. |
| first_indexed | 2024-03-06T23:50:26Z |
| format | Working paper |
| id | oxford-uuid:726b8bcf-9cea-4e74-842c-d807febed41f |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-06T23:50:26Z |
| publishDate | 2002 |
| publisher | CEPR |
| record_format | dspace |
| spelling | oxford-uuid:726b8bcf-9cea-4e74-842c-d807febed41f2022-03-26T19:49:56ZBids and Allocations in European IPO Bookbuilding.Working paperhttp://purl.org/coar/resource_type/c_8042uuid:726b8bcf-9cea-4e74-842c-d807febed41fEnglishDepartment of Economics - ePrintsCEPR2002Jenkinson, TJones, HThis Paper uses evidence from a dataset of 27 European IPOs to analyse how investors bid and the factors that influence their allocations. We have the complete books for these deals - amounting to 5540 bids - and so can analyse directly how bids and allocations are related. All these deals are private sector IPOs where the bookrunner was a leading European investment bank. We make use of a unique ranking of investor quality, associated with the likelihood of flipping the IPO, as produced by a group of US and European investment banks. We find that 'high quality' investors are consistently favoured in allocation and in out-turn profits. We also find that bids submitted via the bookrunner and large bids received better pro-rata allocations and higher average profits. We find that a very small proportion of all bids submitted during the bookbuilding contain price limits - especially in hot IPOs - and, in contrast to Cornelli and Goldreich (2001), we do not find that that such bids are favoured in terms of allocation. |
| spellingShingle | Jenkinson, T Jones, H Bids and Allocations in European IPO Bookbuilding. |
| title | Bids and Allocations in European IPO Bookbuilding. |
| title_full | Bids and Allocations in European IPO Bookbuilding. |
| title_fullStr | Bids and Allocations in European IPO Bookbuilding. |
| title_full_unstemmed | Bids and Allocations in European IPO Bookbuilding. |
| title_short | Bids and Allocations in European IPO Bookbuilding. |
| title_sort | bids and allocations in european ipo bookbuilding |
| work_keys_str_mv | AT jenkinsont bidsandallocationsineuropeanipobookbuilding AT jonesh bidsandallocationsineuropeanipobookbuilding |