This paper examines the German IPO pricing process which combines bookbuilding with a liquid pre-IPO when-issued market … bookbuilding provides information for IPO pricing, beyond the information that is required to set preliminary price ranges. Once …, the evidence suggests that such trading does not fully supplant information gathering through bookbuilding. …

We develop a model that allows for the coexistence of bookbuilding and when-issued trading. We show that, due to …-issued trading may interfere with information gathering thorough bookbuilding, in the case that informative bookbuilding is not … needed. However, informative bookbuilding may be a prerequisite for the when-issued market to function. In this case the …

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

-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 …