Valuation and performance of reallocated IPO shares

Matteo Bonaventura, Giancarlo Giudici and Silvio Vismara

Journal of International Financial Markets, Institutions and Money, 2018, vol. 54, issue C, 15-26

Abstract: Shares in book-building IPOs can be reallocated in different proportions between retail and institutional investors, compared to the target allocation initially reported in official prospectuses. We use a sample of 195 Italian IPOs to discover an increased reallocation to retail investors in IPOs overvalued compared to peer firms. Institutional investors benefit from reallocation as they obtain more shares in IPOs with better long run performance.

Keywords: Initial public offerings; IPO allocation; Long run valuation; IPO valuation (search for similar items in EconPapers)
JEL-codes: G24 G32 (search for similar items in EconPapers)
Date: 2018
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:intfin:v:54:y:2018:i:c:p:15-26

DOI: 10.1016/j.intfin.2017.05.005

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