Purnanandam, Amiyatosh K. - In: Review of Financial Studies 17 (2004) 3, pp. 811-848
While IPOs have been underpriced by more than 10% during the past two decades, we find that in a sample of more than 2,000 IPOs from 1980 to 1997, the median IPO was significantly overvalued at the offer price relative to valuations based on industry peer price multiples. This overvaluation...