A note on the pricing of IPOs

Frederik Lundtofte

doi:10.1016/j.econlet.2009.10.014

A note on the pricing of IPOs

Frederik Lundtofte^*

^*Corresponding author for this work

Research output: Contribution to journal › Journal article › Research › peer-review

2 Citations (Scopus)

Abstract

This paper studies the pricing of IPOs in a tractable model in which an investment bank faces some investors with superior information. We show how this can lead to underpricing and we make a number of empirical predictions.

Original language	English
Journal	Economics Letters
Volume	106
Issue number	2
Pages (from-to)	105-107
Number of pages	3
ISSN	0165-1765
DOIs	https://doi.org/10.1016/j.econlet.2009.10.014
Publication status	Published - 1 Feb 2010
Externally published	Yes

Keywords

Fixed-price auction
IPO underpricing
Monopoly pricing
Risk aversion

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abstract = "This paper studies the pricing of IPOs in a tractable model in which an investment bank faces some investors with superior information. We show how this can lead to underpricing and we make a number of empirical predictions.",

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KW - IPO underpricing

KW - Monopoly pricing

KW - Risk aversion

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JO - Economics Letters

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A note on the pricing of IPOs

Abstract

Keywords

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