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El underpricing de las IPO las vuelve atractivas para ellos, siendo los grandes inversores los que representan gran proporcion de una nueva emision.
Fourth, asymmetric-information hypotheses indicates that the lack of capital market's information of issuers forces issuers to allow investment banker to sell their share at cheap price and uninformed investors ask for the underpricing of the IPO issues to protect themselves from the capital loss.
IPO underpricing is one of the most popular topics studied concerning.
In an interview in May, Norman Villamin, chief investor officer of private banking at UBP, said he believed the sterling was underpricing political uncertainty around the Brexit negotiations.
To test these hypotheses, a two-step hierarchical multiple regression analysis was performed with IPO underpricing as the dependent variable which is the predominant performance variable in IPO research (Daily et al.
In Supplemental Appendix 2, I return to the current example and show how the underpricing translates into wealth losses (a dilution cost) for the preexisting shareholders.
2003) find that the positive correlation between initial underpricing and liquidity in the months following an IPO is formed through the creation of a broader ownership structure resulting from the allocation process.
Generally speaking, IPO volume and IPO underpricing have been studied separately in the IPO literature.
Finally, this study adds to the underpricing literature at IPOs by highlighting a potential benefit of underpricing.
They observe that in many countries, larger underpricing is associated with large levels of oversubscription.
It is generally believed that at the time of Initial Public Offering, mostly corporation's face underpricing.