Background: Compared with the fixed-price mechanism, the bookbuilding mechanism has not changed the Chinese IPO high … using either fixed-price or bookbuilding mechanisms, but when the investors’ heterogeneity expectation is the same, lower … IPO underpricing can be obtained by the issuing of bookbuilding compared with that of fixed price. Secondly, the IPO …

-discriminatory auctions to bookbuilding. We find that bookbuilding leads to significantly higher underpricing than hybrid price …-discriminatory auctions. Further, we find evidence that price accuracy tends to be higher for auctions than for bookbuilding. The results hold … regulation. The results suggest that the interests of issuers and underwriters are not aligned. The popularity of bookbuilding …