This paper analyses the valuation process of companies listed on the Italian Exchange in the period 2000–2009 at their initial public offering (IPO). One the most common valuation techniques declared in the IPO prospectus to determine the offer price is the discounted cash flow (DCF) method....

In this work, we study the reallocation of shares to retail and institutional investors, measured as the difference between the allocation declared before the initial public offering (IPO) and the effective allotment decided by the underwriter after the bookbuilding process. The reallocation is...