Has the introduction of bookbuilding increased the efficiency of international IPOs?

Tim Jenkinson, William Wilhelm () and Alexander Ljungqvist ()

OFRC Working Papers Series from Oxford Financial Research Centre

Abstract: By 1999, close to 80% of non-U.S. IPOs were marketed using bookbuilding methods. We study whether the recent introduction of this technology by U.S. banks and their inclusion in non-U.S. IPO syndicates has promoted efficiency in primary equity markets. We analyze both direct and indirect costs (associated with underpricing) using a unique dataset containing information on 2,051 initial public offerings in 61 non-U.S. markets during the period 1992-1999. The direct costs of bookbuilding are typically twice as large as direct costs for fixed-price offers. However, bookbuilding leads to substantially less underpricing. This benefit is more pronounced when the target market includes U.S. investors, when U.S. listing is sought and when U.S. banks are part of the syndicate.

Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.finance.ox.ac.uk/file_links/finecon_papers/2000fe04.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.finance.ox.ac.uk:80 (No such host is known. )

Related works:
Working Paper: Has the Introduction of Bookbuilding Increased the Efficiency of International IPOs? (2000)
Working Paper: Has the introduction of bookbuilding increased the efficiency of international IPOs? (2000)
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:sbs:wpsefe:2000fe04

Access Statistics for this paper

More papers in OFRC Working Papers Series from Oxford Financial Research Centre Contact information at EDIRC.
Bibliographic data for series maintained by Maxine Collett ().