IPO procedures in Europe: the development of practices and perspectives

Emmanuel Boutron, Jean-François Gajewski (), Carole Gresse and Florence Labégorre
Additional contact information
Emmanuel Boutron: CEROS - Centre d'Etudes et de Recherches sur les Organisations et la Stratégie - UPN - Université Paris Nanterre
Jean-François Gajewski: IRG - Institut de Recherche en Gestion - UPEM - Université Paris-Est Marne-la-Vallée - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12
Carole Gresse: DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique
Florence Labégorre: LEM - Lille - Economie et Management - Université de Lille, Sciences et Technologies - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: Because IPO mechanisms determine the initial trading price and the allocation of newly listed firms' shares, they have financial and strategic consequences for shareholders. For that reason, it is of interest to analyse the relative advantages and disadvantages of the different procedures made available to candidate firms. A survey of listing practices in fifteen European countries shows the increasing prominence of book-building. Although this IPO mechanism is probably the only way to go public for young and risky firms that could not list otherwise, auctions run by exchanges may enhance the competitiveness and efficiency of the primary markets for issuers and investors. Further, in the prospect of integrated European stock markets, it appears necessary to pursue the harmonisation of IPO procedures and listing requirements that has started with the enforcement of the Prospectus Directive.

Keywords: listing procedure; IPO; IPO mechanism; fixed-price offer; auction; book-building (search for similar items in EconPapers)
Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Published in Revue d'économie financière, 2006, 82 (1), pp.89 - 105. ⟨10.3406/ecofi.2006.4439⟩

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01528573

DOI: 10.3406/ecofi.2006.4439

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().