Quid Pro Quo in IPOs: Why Book-building is Dominating Auctions

Research, Article, Preprint English OPEN
Degeorge, François; Derrien, Francois; Womack, Kent L;
(2005)
  • Publisher: Milano: Fondazione Eni Enrico Mattei (FEEM)
  • Subject: Frankreich | D42 | Emissionsgeschäft | D44 | auctions; book building; IPOs | Auction | Auktion | IPOs | Auction, IPOs | Börsengang | Emissionskurs
    • jel: jel:D44 | jel:D42 | jel:G32
      ddc: ddc:330

The book-building procedure for selling initial public offerings to investors has captured significant market share from auction alternatives in recent years, despite significantly lower costs in both direct fees and initial underpricing when using the auction mechanism... View more
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