INITIAL PUBLIC OFFERINGS: GOING BY THE BOOK
In the U.S., and increasingly in other countries as well, IPO securities are marketed to investors in a process known as "book-building"-one that amounts to polling institutional investors to establish a demand schedule for the issue and then allotting stock to individual investors according to the strength of their professed interest. Although book-building methods require use of discriminatory tactics that have attracted strong criticism from investors and regulators, this article defends such practices by demonstrating that book-building is more efficient than alternative methods. It effectively allows issuers to increase the net proceeds of their offerings by making better use of information about market demand conditions. 1997 Morgan Stanley.
Year of publication: |
1997
|
---|---|
Authors: | Benveniste, Lawrence M. ; Wilhelm, William J. |
Published in: |
Journal of Applied Corporate Finance. - Morgan Stanley, ISSN 1078-1196. - Vol. 10.1997, 1, p. 98-108
|
Publisher: |
Morgan Stanley |
Saved in:
freely available
Saved in favorites
Similar items by person
-
What's special about the specialist?
Benveniste, Lawrence M., (1992)
-
Evidence of Information Spillovers in the Production of Investment Banking Services
Benveniste, Lawrence M., (2003)
-
A comparative analysis of IPO proceeds under alternative regulatory environments
Benveniste, Lawrence M., (1990)
- More ...