We compare fees charged by investment banks for conducting IPOs in the U.S. and Europe. In recent years the “7% solution”, as documented by Chen and Ritter (2000), has become even more prevalent in the U.S., and is now the norm for IPOs raising up to $250m. The same banks dominate both...

Addressing some of the underlying economics and the empirical evidence on bookbuilding.

This Paper uses evidence from a dataset of 27 European IPOs to analyse how investors bid and the factors that influence their allocations. We have the complete books for these deals - amounting to 5540 bids - and so can analyse directly how bids and allocations are related. All these deals are...

Is there another technology bubble in the making? This question has exercised the media and markets since the extraordinary post-IPO performance of LinkedIn, the social network for professionals. Social-sales aggregator Groupon has recently suggested that conventional valuation methods are...