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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 …
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We provide a model of bookbuilding in IPOs, in which the issuer can choose to ration shares. We consider two allocation …
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