IPO Pricing with Bookbuilding and a When-Issued Market

Arbeitspapier

This paper examines the German IPO pricing process which combines bookbuilding with a liquid pre-IPO when-issued market. We find no partial adjustment phenomenon, as has been documented for U.S. IPOs. We thus find no evidence that bookbuilding provides information for IPO pricing, beyond the information that is required to set preliminary price ranges. Once price ranges are set, when-issued trading commences and indicates how IPOs should be priced in the primary market. However, the evidence suggests that such trading does not fully supplant information gathering through bookbuilding.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Nota di Lavoro ; No. 8.2004

Classification and Topics

• Classification: Wirtschaft ; Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
• Subject: Initial public offerings ; Bookbuilding ; When-issued trading ; Börsengang ; Emissionskurs ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Stomper, Alex ; Aussenegg, Wolfgang ; Pichler, Pegaret
• Event: Veröffentlichung
• (who): Fondazione Eni Enrico Mattei (FEEM)
• (where): Milano
• (when): 2004

Further information

• Handle: http://hdl.handle.net/10419/117887
• Last update: 10.03.2025, 11:41 AM CET