This article examines the factors that determine IPO success in raising equity capital, and how this success translates … pre-IPO profitability is a strong and positive signal for investors that translates into a higher offer price and … therefore determines the success of the issuance. However, companies with high IPO success do not provide investors with better …

clientele of sophisticated investors, consistent with Shiller's Impresario Hypothesis. Our pre-IPO bubble (1981-1996) empirical … results yield evidence supporting both selling mechanisms. Under-demanded small IPO issues are "pushed" by the brokers, while … some under-demanded large IPO issues instead increase the offer price, with large first-day turnover characteristics of …