Has the introduction of bookbuilding increased the efficiency of international IPOs?

Working paper

By 1999, close to 80% of non-U.S. IPOs were marketed using bookbuilding methods. We study whether the recent introduction of this technology by U.S. banks and their inclusion in non-U.S. IPO syndicates has promoted efficiency in primary equity markets. We analyze both direct and indirect costs (associated with underpricing) using a unique dataset containing information on 2,051 initial public offerings in 61 non-U.S. markets during the period 1992-1999. The direct costs of bookbuilding are ty...

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Authors: Jenkinson, T; Wilhelm, W; Ljungqvist, A

• Publication status: Published
• Publisher: University of Oxford Publisher's website
• Series: Department of Economics Discussion Paper Series
• Publication date: 2000-04-01
• Paper number: 2000-FE-04
• Keywords: initial public offerings; bookbuilding; underwriting spreads